Question: Decide whether each statement is true, or false. Future coupon payments are promises the firm makes to bondholders and future dividends are promises the firm

Decide whether each statement is true, or false.

Future coupon payments are promises the firm makes to bondholders and future dividends are promises the firm makes to stockholders.

In order to properly value a stock, one does NOT need to know the expected holding period.

A bondholder is the party lending money.

A bond's coupon payments are typically part interest and part principal repayment.

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