Answer:
B) Bondholders have a senior claim on assets and income relative to stockholders.
Explanation:
Bond holder: They are one who owns bonds issued by the company, where companies are not liable to pay a dividend if they fail to generate enough profit. Although preferred stock provides added financial leverage in much the same way as bonds, it differs from bonds in that the issuer can pass a dividend payment without suffering the consequences that result when an interest payment is missed on a bond.
Share holder: They are the ones who own stock in a company. The buyer has an option to choose between common stock and preferred stock. The company take priority in paying a dividend to the common stockholder, however, the preferred stockholder has a voting right in the company.
Answer:
D.
Explanation:
Based on the scenario being described within the question it can be said that when allocating funds, the firm should probably assign the highest cost of capital to division Z because it is most likely the riskiest of the three divisions. This is because Division Z focuses on research and development which means that they might not actually discover or create something that can bring value to the company and is therefore highly risky.
Answer:
9.2%
Explanation:
expected return of the investment = potential return x chance of each return happening
Expected return of the investment:
- 20% chance of occurring x 30% potential return = 0.2 x 30% = 6%
- 50% chance of occurring x 10% potential return = 0.5 x 10% = 5%
- 30% chance of occurring x -6% potential return = 0.3 x -6% = -1.8%
- total expected return = 9.2%
C
Cause it doesn’t matter if he went to collage or not
place a call to confirm the interview
Answer:B.
I think B is the answer.
