The maximum reward for owning a debt security is Blank______, and the maximum reward for owning equity is Blank______. Multiple choice question. fixed, fixed unlimited, fixed fixed, unlimited unlimited, unlimited
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The maximum reward for owning a debt security is Blank______, and the maximum reward for owning equity is Blank______.
fixed, fixed
unlimited, fixed
fixed, unlimited
unlimited, unlimited
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- in the 5 c's of stracturing a loan approval, what fundamental piece do you think it ignore or fall to highlight? capacity capital collateral conditions character ThanksChapter 10, Question 16: What are contingent liabilities? List three examples of contingent liabilities. When should contingent li-abilities be recorded in the accounts?There is room of ………debt settlements in the C3 modelSelect one:a.Only automaticb.Both automatic and voluntaryc.Only one type of d.Only voluntarye.No
- Which of the following loan types has a beginning loan balance equal to the ending loan balance? Group of answer choices Interest-only Partially amortizing Negative amortizing Fully amortizing Equal amortizingMultiple ChoiceIdentify the choice that best completes the statement or answers the question. 9. For a liability to exist, a. a past transaction or event must have occurred. b. the exact amount must be known. c. the identity of the party owed must be known. d. an obligation to pay cash in the future must exist. 10. The effective interest rate on bonds is higher than the stated rate when bonds sell a. at face value. b. above face value. c. below face value. d. at maturity value. 11. The effective interest rate on bonds is lower than the stated rate when bonds sell a. at maturity value. b. above face value. c. below face value. d. at face value. 12. When interest expense is calculated using the effective-interest amortization method, interest expense (assuming that interest is paid annually) always equals the a. actual amount of interest paid. b. book value of the…According to the fair value principle, assets and liabilities should be reported Select answer from the options below 1.at their fair market value. 2.at their historical cost. 3.at a value agreed upon by interested parties. 4.at cost plus inflation.
- A secured line of credit: Select one: a. is backed up by pledged assets b. is not backed up by pledge assets c. has a higher interest rate than an unsecured line of credit d. has a lower limit than an unsecured line of credit5. BAC Co. and YXZ Co. are identical firms in all respects except for their capital structure. BAC is all equity financed with $800,000 in stock. YXZ uses both stock and perpetual debt; its stock is worth $400,000 and the interest rate on its debt is 10 percent. Both firms expect EBIT to be $95,000. Ignore taxes.Que 2 Evaluate in terms of the framework, why it is appropriate to capitalize borrowing costs under certain circumstances?
- What is the amount received by partially secured creditor? A. P40,000B. P60,000C. P70,000D. P65,000Required Correct Option 1- The amount which borrower has to pay to lender for taking and using his amount on total amount accumulated is called as _____________. a. Real rate of interestb. Nominal interest ratec. Nominal risk free interest rated. Compound interestA funding component is O the total funding required for a specified decision point O a long-term source of capital O a collateral agreement, such as pledging an asset as security for a mortgage bond O an ancillary requirement on a loan that affects its risk, such as a restrictive covenant
