Quiz Ch 11 – World United Stock
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
Which factor will increase the rate of return on World United stock without affecting its risk level, assuming all else remains constant?
Which factor will increase the rate of return on World United stock without affecting its risk level, assuming all else remains constant?
What action should you take regarding the Xerox and Canon bonds with an expectation of rising interest rates?
How could a bond manager exploit a hump in the yield curve at the 5-year point?
How does a change in a bond’s yield to maturity affect its price compared to an equal-magnitude yield decrease?
What action should you take if you expect the yield spread between AA and AAA bonds to revert to its historical level (25 basis points from the current 9 basis points)?
At which break-even point does a project operate when its operating cash flow is zero?
Which value must be zero at the accounting break-even point?
How does the discount rate affect the duration of a zero-coupon bond based on its time to maturity?
What is the term for risks that are specific to a single firm?