Question: please answer all 4 multiple choice questions (chegg policy allows 4 mc questions) Debenture refers to: The legal agreement between the issuing firm and the


please answer all 4 multiple choice questions (chegg policy allows 4 mc questions)Debenture refers to: The legal agreement between the issuing firm and the bondholders A bond with no specific assets pledged as collateral Bonds where the identity of the bondholder is not known Bonds that may be converted into common stock None of these A stock just paid a dividend of $2.00. Dividends are expected to grow at an annual rate of 4%. What is the price of the stock if the required rate of return is 10 $33.33 $34.67 $53.00 $71.33 $108.00 Arguments for NOT paying dividends include: A higher tax rate on capital gains versus dividends The "bird in the hand" theory A higher tax rate on dividends versus capital gains None of the above 4.12% A Co. issues new bonds at $1,270. The bonds have 25 years to maturity and pay a semiannual coupon of 545.00. Assumingargalta 4.50% 2.95% 5.67% 6.75% true this response
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