Type of financial security in which firms do not borrow money rather lease their assets is classified as____________________?

A: Leases

B: Preferred stocks

C: Common stocks

D: Corporate stocks

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Leases

Double declining balance method and sum of years digits are included in__________?

A: Yearly method

B: Single methods

C: Double methods

D: Accelerated methods

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Accelerated methods

Interest rates, tax rates and market risk premium are factors which an/a_____________?

A: Industry cannot control

B: Industry cannot control

C: Firm must control

D: Firm cannot control

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Firm cannot control

In retention growth model, payout ratio is subtracted from one to calculate___________?

A: Present value ratio

B: Future value ratio

C: Retention ratio

D: Growth ratio

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Retention ratio

Real rate expected cash flows and nominal rate expected cash flows must be______________?

A: Accelerated

B: Equal

C: Different

D: Inflated

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Equal

Real interest rate and real cash flows do not include_____________?

A: Equity effects

B: Debt effects

C: Inflation effects

D: Opportunity effects

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Inflation effects

Price of an outstanding bond decreases when market rate is_______________?

A: Increased

B: Decreased

C: Earned

D: Never changed

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Increased

Right held with corporations to call issued bonds for redemption is considered as___________?

A: Artificial provision

B: Call provision

C: Redeem provision

D: Original provision

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Call provision

Required rate of return in calculating bonds cash flow is also classified as_______?

A: Going rate of return

B: Yield

C: Earning rate

D: Both A and B

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Both A and B

If default probability is zero and bond is not called, then yield to maturity is_____________?

A: Mature expected return rate

B: Lower than expected return rate

C: Higher than expected return rate

D: Equal to expected return rate

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Equal to expected return rate

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