ost of capital versus investor yields. Also, explain the municipal bond interest in term

Q: Describe the Ratios that show how a firm uses debt financing?

A: Debt to Asset ratio It is a ratio that helps in measuring the company’s assets financed through the…

Q: With a support of relevant calculations differentiate the followings terms as used in corporate…

A: Corporate finance is an important aspect or subject area of finance. Corporate finance deals with…

Q: Stocks  2. Bonds  3. Real estate

A: The stock simply means shares. The ownership of a company is divided among shares. A single share…

Q: What is the expected return of the corporate bond​ investment?

A: Expected return of the corporate bond investment is calculated using following equation Expected…

Q: What are the pros and cons of investing into the following assets? Make comparison. a. A unit trust…

A: Unit trust investments invest in a range of individual securities. There will be a systematic risk…

Q: What are the three main types of markets for financial capital? The three main types of markets for…

A: A firm needs capital to fund its operations and its activities. A firm can obtain capital from…

Q: (b). Briefly discuss how a firm should choose its debt-equity ratio.

A: Debt- equity ratio is the ratio which measures about how much the firm is financed through the funds…

Q: Explain the risks of holding debt and equity from the point of view of an investor.

A: Debt investments are generally fixed yielding instruments such as bonds, company deposits, etc.…

Q: Which types of bonds are most liquid? Corporate Bonds O Municipal Bonds Treasury Bonds O Agency…

A: A bond is a financial instrument that represents a loan made by an investor to a borrower, which can…

Q: c. Which yield might investors expect to earn on these bonds, and why?

A: Bond yield is the expected return on an invested bond. It is the discount rate which calculates its…

Q: How company  take tax advantage of Bonds Payable

A: A bond is a financial instrument which is issued by an entity with the intention to re-pay the…

Q: Rank bonds, common stock, and preferred stock with regard to two factors the possibility of a…

A: Common stock is the stock which does not have preferential right of dividend and which are repaid by…

Q: How do bonds provide financing to corporations for their capital projects? What are the key…

A: A bond is a good source of finance. Payment of coupon at a regular interval help in tax savings.

Q: Explain the difference between owning a bönd vs owning a stock? What are the advantages and…

A: There are many ways of doing investment and type of investment depends on required rate and risk…

Q: What is a bond sinking fund? What is the purpose of establishing a sinking fund? Are bonds that…

A: A bond sinking fund is the total amount of cash kept in a fund that will be used to retire a bond…

Q: Compare and contrast corporate bonds with Government        bonds.

A: Bonds refer to the investment securities in which the money is lent by an investor to the company…

Q: How a company takes tax advantage of Bonds Payable (or any other fixed cost financing)?

A: Giving securities is one path for organizations to fund-raise. A bond capacities as a credit between…

Q: From an investors perspective what are the pros and cons of equity financing? Please discuss.

A: Financing the te requirement of capital by issuing equity shares in the market is called equity…

Q: What are municipal bonds? What characteristics makes them especially attractive to high-income…

A: Bonds are debt instruments issued by entities. Different kinds of entities can issue bonds and the…

Q: Which of these entities has more stable and secured investment? a. Common stockholder b. Preferred…

A: Investment is defined as the item or asset which is acquired with the objective of generating the…

Q: The sale of bonds is also referred as: a. Public Finance b. Debt Finance c. Equity Finance d.…

A: The Bonds is a type of  a loan. When  a company, Government or muncipal corporation is in need of…

Q: Capital outlays financed from general obligation bond proceeds should be accounted for through a:…

A: There are two types and forms of expenses that are being incurred by the business. One is capital…

Q: Ownership of debt instruments of the government and other companies that can be readily converted to…

A: Cash and its equivalents are the current assets available with the entity that are either in the…

Q: Which of the following statements is TRUE in Long-term financial plan? A The specific steps or…

A: Financial plans are plans that are made for planning about the business finances. These can be short…

Q: Explain a corporate bond.

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: A corporation decides to sell its newly issued bonds to pension funds and insurance companies, what…

A: A corporate bond is a debt instrument that a company issues and sells to investors. The company…

Q: Can the yield on company traded bonds can be used as an estimate for some, or all, of the company’s…

A: The yield on company-traded bonds can be a valuable indicator and used as an estimate for some or…

Q: 7.) Describe the debt and equity markets? How do organizations obtain financing from each market?…

A: Debt is considered riskless, however equity securities have some inherent risk.

Q: xplain how individual securities affect investment portfolio risk. In your answer, when discussing…

A: Portfolio risk - Portfolio risk refers to the possibility that the assets or units in your…

Q: how the zero-coupon rate bond provides return to the investor and elaborate on the advantages to the…

A: Bond: Bond is a kind of debt instrument typically issued by corporations, government organizations…

Q: What would be the total investment in bonds? 6. Do the stock and bond investments fall within…

A: 5. Calculate the amount invested in bonds as follows: Amount invested in bonds=D Right bonds +Tried…

Q: Discuss the characteristics of corporate bonds.

A: Corporate bond-It is a bond issued by a company to fund its business operations, major expansions,…

Q: If you are a company owner, which one you choose debt financing, equity financing or a combination…

A: Finance is very important to run a business. It is very necessary to have finance to conduct day to…

Q: How does one determine the required rate of return of a bond, the cash flows of a bond and the value…

A: A bond is a debt security or financial instrument that represents a loan made by an investor to a…

Q: Identify investments as an investment in either debt (D) securities or equity (E) securities.…

A:

Q: Following the agency theory of capital structure, discuss how debt financing can be used as a…

A: The agency cost of debt is the conflict of interest that exists between a company's shareholders and…