Many investors buy land with the intention of subdividing it. True False
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Many investors buy land with the intention of subdividing it. True False
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- Explain the functioning of factoring. How does a company selling its receivables benefit?In what circumstances might a large corporation sell stock rather than bonds to obtain long-term financing? In what circumstances would it sell bonds rather than stock?Describe the basic features of each of the following types of bonds: Mortgage bonds Debentures Subordinated debentures Equipment trust certificates Collateral trust bonds Income bonds Explain the differences between par value, book value, and market value per share of common stock. Discuss the various stockholder rights.
- Investment X offers to pay you $4,500 peryear for nine years, whereas Investment Y offers to pay you $7,000 per year for fiveyears. Which of these cash flow streams has the higher present value if the discountrate is 5 percent? If the discount rate is 22 percent?Marketable securities can be converted into cash in a matter of days.; True or FalseWhat is partial amortization?
- Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at par. After a year, she was able to sell her bond for $11,000. Calculate the rate of return on Anna’s investment. What is the current yield and capital gain on her investment?The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock is known as: O a. Merger O b. All the options are correct on Oc Downsizing O d. BuyoutWhen selling a property with owner financing why should you only finance the portion of the purchase price that represents your profit rather than the entire purchase price?
- Explain the process of factoring. What is the value of factoring to a company that sells its receivables?1. What is the interpretation of the coefficient of determination for the investor? If the coefficient of correlation for two securities is 0,7, what is the coefficient of determination? 2. What can you about probabality?When an asset can be easily and rapidly converted into cash without substantial loss of value, the asset is said to be