Question: Please mark the following as either True or False. (1 point each) All else equal, when rates go up, bond prices go down. The indenture
Please mark the following as either True or False. (1 point each) All else equal, when rates go up, bond prices go down. The indenture is the contract between the company and the bond holders. All else equal, when expected inflation goes up, one would expect nominal interest rates to fall. The yield to maturity on a bond never changes. For a US corporation, both interest payments and dividends are tax deductible. The current price of a stock represents the present value of all of the dividends the stock is ever expected to pay. Preferred stocks generally do not have voting rights. When a preferred stock is cumulative it means that any missed preferred dividends in the past) and the current preferred dividend must be paid before any dividend can be paid to the common stock holders.. The dividends on preferred stock are constant. If a company's dividends are growing at a constant rate, then the stock price will grow at that same rate
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
