The most obvious leakage or capital market imperfection affecting the debt and equity choice is: (Points : 1) bankruptcy risk. differential taxation of cash flows between debt and equity. the

obligatory payment of interest and discretionary payment of dividends. the inability of bond rating agencies to perfectly foresee risk.

The most obvious leakage or capital market imperfection affecting the debt and equity choice is: differential taxation of cash flows between debt and [ equity.
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Asked 7/14/2013 10:17:34 AM

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Interest rates are given as annual rates. If semiannual (twice a year) compounding is being used, then you would make the following adjustments: (Points : 1)
Double the rate and double the number of years.
Double the rate and halve the number of years.
Halve the rate and halve the number of years.
Halve the rate and double the number of years. **Weegy:** Interest rates are given as annual rates. If semiannual (twice a year) compounding is being used, then you would make the following adjustments: Double the rate and halve the number of years. [
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Asked 7/7/2013 3:26:40 PM

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Suppose a zero-coupon bond is selling for $614.00 today. It promises to pay $1,000 in exactly 10 years with annual compounding. Its annual rate of return would be about ____. (Points : 1)
4%
5%
6%
7%
**Weegy:** Suppose a zero-coupon bond is selling for $614.00 today. It promises to pay $1,000 in exactly 10 years with annual compounding. Its annual rate of return would be about 7%. (More)

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Asked 7/7/2013 3:28:30 PM

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Simple interest means that: (Points : 1) the interest rate is the same every period. the dollar amount of interest is the same every period. interest is only paid once a year. the compounding periods are annual.
**Weegy:** Simple interest means that: (Points : 1) the interest rate is the same every period. the dollar amount of interest is the same every period. (More)

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Asked 7/7/2013 3:32:21 PM

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The name “annuity” suggests annual payments, but in fact we apply the term to: (Points : 1) any set of payments of the same dollar amount irrespective of timing. any set of monthly payments. any set of regularly spaced payments of the same dollar amount. any set of multiple payments. **Weegy:** The name “annuity” suggests annual payments, but in fact we apply the term to: any set of multiple payments.
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Asked 7/7/2013 3:31:51 PM

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The cash flows for a perpetuity continue into the future indefinitely. An example of a perpetuity is: (Points : 1) preferred stock. corporate bonds. a home mortgage. a consumer loan.
**Weegy:** The cash flows for a perpetuity continue into the future indefinitely. An example of a perpetuity is corporate bonds. (More)

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Updated 7/7/2013 3:57:20 PM

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