# The belief that investors require a higher return to entice them into holding long-term securities is the viewpoint of the

###### Question:

1. The belief that investors require a higher return to entice them into holding long-term securities is the viewpoint of the

A. the expectations hypothesis
B. segmentation theory
D. market credit crunch theory

2. The market allocates capital to companies based on

A. risk
B. efficiency
C. expected returns
D. all of the above

3. As the interest rate increases, the present value of an amount to be received at the end of a fixed period

A. increases
B. decreases
C. remains the same
D. not enough information to tell

4. A conservative financing plan involves

A. heavy reliance on debt
B. heavy reliance on equity
C. high degree of financial leverage
D. high degree of combined leverage

5. At age 5, how much would you have to save per month to have $1 million in your account at age 65, if your investment reate was 10% per year? Assume no taxes and compounding on a monthly basis A.$213.30
B. $21.23 C.$274.60
D. can't be done with these assumptions

6. the extent to which inventory financing may be use depends on

A. marketability of pledged goods
B. price stability of goods
C. perishability of goods
D. all of the above

7. After 20 years, 100 shares of stock originally purchased for $1000 was sold for$5000. What was the yield on the investment? Choose the closest answer.

A. 19%
B. 5%
C. 12.7%
D. 8%

8. Unders normal conditions (70% probability), Financing Plan A will produce $24,000 higher than Plan B. Under tight money conditions (30% probability), Plan A will produce$40,000 less then Plan B. What is the expected value of return for Plan A ove Plan B

A. $28,800 B.$4,000
C. $4,800 D. 35,2000 9. When Patricia sells her General Motors common stock at the same time that Brian purchases the same amount of General Motor's stock, General Motors receives: A. the "spread" between the Bid and Ask of the transaction. B. the dollar amount of the transaction, less brokerage fees. C. only the par value of the common stock D. nothing 10. Corporations that do not issue financial securities such as stock or debt obligations: A. will not be able to increase sales B. cannot be profitable C. generate sufficient funds to fullfill their needs D. do not face double taxation of their profits ## Answers #### Similar Solved Questions 1 answer ##### Studies have shown that improvements in quality can lead to Multiple Choice A higher total cost... Studies have shown that improvements in quality can lead to Multiple Choice A higher total cost as additional costs are spent to improve quality. Lower productivity because of the need to meet a higher quality standard Increases in throughput time. Increases in productivity (e.g, lower manufacturing... 1 answer ##### Question 12 You wish to raise capital for your "Game of Thrones merchandise disposal" firm. Your... Question 12 You wish to raise capital for your "Game of Thrones merchandise disposal" firm. Your intended capital structure is: 45% debt 5% preferred stock 50% common stock Pretax Cost of Debt: 15% Tax rate = 40% Cost of Preferred Stock: 7.5% Cost of Common Stock: 35% What is the WACC? O24.6... 1 answer ##### BIU 205 - NLV-B-TIH Fall 1 2019 HI, katnia signu urse Home Ch 14 HW Koch's... BIU 205 - NLV-B-TIH Fall 1 2019 HI, katnia signu urse Home Ch 14 HW Koch's Postulates: Understanding Disease - Foundation Figure 14.3 ③ 4 018 C This activity presents experimental results obtained when a suspected pathogen was tested and asks you to identify appropriate conclusions based o... 1 answer ##### The only force acting on a 1.0-kg object moving along the x axis is shown. If... The only force acting on a 1.0-kg object moving along the x axis is shown. If the velocity Vx is +2.0 m/s at t = 0, what is the velocity at 1 = 4.0 s? F. (N) 16 8 0 1 (s) co +2.0 m/s +6.0 m/s +5.0 m/s +7.0 m/s +4.0 m/s... 2 answers ##### What is dark energy? What is dark energy?... 1 answer ##### 24. Many creationists will allow that microevolution (for example, changing gene frequencies in a population) has... 24. Many creationists will allow that microevolution (for example, changing gene frequencies in a population) has occurred, and will even acknowledge that species adapt to different environments. However, they deny that macroevolution (they define it as the evolution of new "kinds") is suppo... 1 answer ##### Indicate the concentration of each ion present in the solution formed by mixing the following. Part... Indicate the concentration of each ion present in the solution formed by mixing the following. Part A 44.0 mL of 0.110 M Na2SO4 and 25.0 mL of 0.200 M KCl. Assume that the volumes are additive. Enter your answers, separated by commas, using three significant figures. Part B 3.80 g KCl in 75.0 mL of ... 1 answer ##### Assessing pre-renal acute kidney injury (AKI? Assessing pre-renal acute kidney injury (AKI?... 1 answer ##### 2. Light bulbs are known to have an average lifetime of 2,000 hours. Suppose we model... 2. Light bulbs are known to have an average lifetime of 2,000 hours. Suppose we model the lifetime of a light bulb by the following probability density function with (yet unknown) parameter c: p(t) = 1-e-t/c when t20 and p(t) = 0 otherwise. (a) Determine the value of the parameter c so that the prob... 1 answer ##### A solution is made by mixing 244.0 mL 244.0 mL of ethanol initially at 13.0 ∘... A solution is made by mixing 244.0 mL 244.0 mL of ethanol initially at 13.0 ∘ C 13.0 ∘C with 244.0 mL 244.0 mL of water initially at 21.4 ∘ C 21.4 ∘C . What is the final temperature of the solution assuming that no heat is lost? The density of ethanol is 0.789 g/mL 0.789 g/mL... 1 answer ##### Please explain I dont understand at all A payday loan company charges a$35 fee for...
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