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I need help with this exam! I have an hour left to...

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I need help with this exam! I have an hour left to take it! 1. (TCO 6) Which of the following is true regarding income bonds? (Points : 4) Are relatively uncommon Can be exchanged for a fixed number of shares at maturity only Can be exchanged for a fixed number of shares before maturity Allow the holder to require the issuer to buy the bond back 2. (TCO 6 and 7) The document that outlines the covenants and duties existing between bondholders and the issuing corporation is called (Points : 4) an indenture. a debenture. secured debt. protective covenants. 3. (TCO 6) Company A has a bond outstanding with $90 annual interest payment, a market price of $820, and a maturity date in five years. Assume the par value to be $1,000. What is the bond?s yield to maturity? (Points : 4) 9% 14% 11% Cannot be determined None of the above 4. (TCO 2) Which of the following does not reduce collection float? (Points : 4) installing a lockbox system. deposit collections weekly, instead of daily. requiring all customers pay by cash, rather than with check. utilize the benefits of the Check Clearing Act for the 21stCentury. 5. (TCO 2) Storage and tracking costs, insurance and taxes, and losses due to theft are examples of: (Points : 4) Inventory depletion costs Sunk costs Carrying costs Shortage costs 6. (TCO 1) Provide three examples of situations in which business ethics play a role in the financial management process. Explain your rationale, and how these situations may affect the value of the firm. (Points : 10) 7. (TCO 4) What are erosion costs? Provide one real-life example of an erosion cost for a project. Should erosion costs be included as project cash flows? Why or why not? Explain your rationale. (Points : 10) 8. (TCO 8) What is the difference between business risk and financial risk? If Company A has a higher business risk than Company B, should its cost of capital be higher? Why or why not? Explain your rationale. (Points : 10) 9. (TCO 2) What are some important elements of the collection policy? (Points : 10) 10. (TCO 6 and 7) Do you believe that it is appropriate for some industries to be more leveraged than others? Explain your rationale. (Points : 10)

 

Paper#3747 | Written in 18-Jul-2015

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