Finc 5310 final e - Study guides, Class notes & Summaries

1 Which of the following statements is most CORRECT? A. To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually. b. The basic doctrine of fairness states that all debtholders must be treated equally. c. The primary test of feasibility in a reorganization is whether every claimant agrees with...

1 Which of the following statements is most CORRECT? A. To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually. b. The basic doctrine of fairness states that all debtholders must be treated equally. c. The primary test of feasibility in a reorganization is whether every claimant agrees with ...

A bond with a face value of $1,000 that sells for $1,000 in the market is called a _____ bond. - Correct Answer-par value A bond with a face value of $1,000 that sells for less than $1,000 in the market is called a _____ bond. - Correct Answer-discount A par value bond offers a coupon rate of 7 percent with semiannual interest payments. The effective annual rate provided by these bonds must be: - Correct Answer-greater than 7 percent but less than 8 percent. A stock with a beta of zero wo...

FINC 5310 1. The Blue Giant has a profit margin of 6.2 percent and a dividend payout ratio of 40 percent. The capital intensity is 1.08 and the debt-equity ratio is .54. What is the sustainable rate of growth? A. 6.30% B. 5.53% C. 5.89% D. 5.60% E. 6.41% - Correct Answer-D 2. Which of the following statements is CORRECT? A. Relative to sole proprietorships, corporations generally face fewer regulations, which makes raising capital easier for corporations. B. One disadvantage of op...

FINC 5310 FINAL Exam 1 Which of the following statements is most CORRECT? A. To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually. b. The basic doctrine of fairness states that all debtholders must be treated equally. c. The primary test of feasibility in a reorganization is whether every...