You are watching: Which of the following securities will likely have the highest default risk premium?
Investors expect to get the greatest returns from federal government -issued securities because the government will certainly not default on securities that has actually issued. (T/F)
A corporation sells securities to an investment banking firm on January first. The following day and also worldwide oil crisis reasons stock prices to drop considerably The corporation is immune from the drop in price of its sock due to which attribute of the investment banking firm?
Reynolds, Inc. requirements to raise $5 million by offering common stock. Reynolds sells 1 million shares of stock at $5 each to Goldguy Sachs, who then is responsible for marketing the shares to investors. This an example of a?
are greater for common stocks than for desired stocks and also bonds as a result of the better leveler of danger associated with owning commonstock
The hazard premium would be higher for an investment in an oil and also gas exploration in unprrange fields that an investment in wanted stock because?
the wanted stock is more liquid.& oil and also gas expedition investments have actually a greater variability in feasible returns
Which of the adhering to represents the correct ordering of retransforms over the duration 1926 to 2008 (from lowest to highest return)
Suppose the complying with rates are averages for banks in your area: interemainder checking accounts pay 1% savings accounts pay 2% and also one year certificates of deposit pay 3%. All accounts are federally insured by the FDIC. The distinction in prices have the right to be described largely by?
Company kind of A decides to borrow $1,000,000 and use the money to buy back $1,000,000 of its widespread stock. The corporation pays 6% on its obtained funds which precisely amounts to the amount of the dividfinish it provided to pay on the prevalent stock it repurchased Because of this,
Corporation A"s net earnings per share will boost due to the taxes deductibility of interemainder cost.
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