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Question
The ratings of a firm's bonds are based on:
a. the firm's ratio of current liabilities to total assets.
b. the dividends paid in the last year by the firm.
c. the earnings per share of the shareholders of subsidiary firms.
d. exchange rate fluctuations of the U.S Dollar and Euro.
e. no precise formula.
Answer
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Related questions
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d. ordinary annuity
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Q:
A firm plans to make investments of $5,000 for the next 10 years, paying the amount at the end of each year. This form of cash flow pattern represents a(n) _____.
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Q:
When the payment for an annuity is made at the end of each period, such an annuity is referred to as a(n) _____.
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Which of the following agreements is included in the Basel III Accord (2010)?
a. Agreement to increase banks' capital (owners' equity) requirements in an effort to reduce the risk that mega bank failures will cause future financial crises
b. Agreement to put restrictions on the ability of the U.S. government to use taxpayers' funds to bail out large financial institutions
c. Agreement to create new organizations to help provide consumers clear and accurate information related to credit so that better-informed decisions can be made
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Q:
Which of the following is true about financial institutions in the United States compared to those in other countries?
a. U.S. financial institutions have been much more heavily regulated than their foreign counterparts with regard to expansion (branching) and the services that could be offered.
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Which of the following plans is administered primarily by the trust departments of commercial banks or by life insurance companies?
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Q:
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Q:
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Q:
When issuing new securities, which of the following decisions is made jointly by a corporation and its investment banker?
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b. Deciding which investment banker to use
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Q:
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Q:
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Q:
As compared to U.S banks, foreign banks are less regulated and have fewer restrictions concerning the types of business activities they can pursue. Therefore, foreign banks often engage in numerous aspects of multilayer financial deals.
a. True
b. False
Q:
The existence of financial intermediaries greatly increases the efficiency of financial markets because, without them, savers would have to provide funds directly to borrowers, which would be a costlier process.
a. True
b. False
Q:
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a. True
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Q:
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a. True
b. False
Q:
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a. True
b. False
Q:
Dual listing of a stock leads to a decrease in the marketability of the stock.
a. True
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a. True
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Q:
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a. Securities and Exchange Commission Act
b. Wall Street Transparency and Accountability Act
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Q:
In 2010, the Securities and Exchange Commission (SEC) announced its support for Generally Accepted Accounting Principles (GAAP).
a. True
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Q:
The Securities and Exchange Commission (SEC) was created to develop and approve a set of common international accounting rules.
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a. True
b. False
Q:
All firms that are publicly traded in the United States will be required to adopt the _____ in the near future.
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c. Governmental Accounting Standards Principles (GASP)
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b. The current ratios of both firms will be increased.
c. The current ratios of both firms will be decreased.
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e. Only Ruby Company's current ratio will be increased.
Q:
Which of the following statements is true regarding debt ratios?
a. Firms with relatively low debt ratios have higher expected returns when business is good.
b. Firms with relatively low debt ratios are exposed to more risk compared to firms with relatively high debt ratios.
c. Firms with relatively high debt ratios have higher expected returns when business is bad.
d. Firms with relatively high debt ratios have higher expected returns when business is good.
e. Firms with relatively low debt ratios have higher expected returns when business is poor.