Stocks differ from bonds because:
A) bond cash flows are known while stock cash flows are uncertain.
B) firms pay bond cash flows prior to paying taxes while stock cash flows are after tax.
C) the ending par value of a bond is known at purchase while the ending value of a share of stock is unknown at purchase.
D) All of the above
Answer: D
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Everett, Miguel, and Ramona are partners, sharing income 1:2:3 . After selling all of the assets for cash, dividing losses on realization, and paying liabilities, the balances in the capital accounts are as follows: Everett, $50,000 Cr.; Miguel, $40,000 Dr.; and Ramona, $30,000 Cr. How much cash is available for distribution to the partners?
a. $120,000 b. $30,000 c. $40,000 d. $90,000
T-bills must offer a premium above the negotiable certificate of deposit (NCD) to compensate for less liquidity and safety
a. True b. False