Operating leverage is caused by a firm using ______ since this causes a ______ cost.
A stock that is more risky than the market will have a beta…
A stock that is more risky than the market will have a beta of ________. A stock that is less risky than the market will have a beta of ________.
Transactions between investors occur in ________ markets whi…
Transactions between investors occur in ________ markets while transactions between a firm and an investor occurs in ________ markets.
The theory of the time value of money refers to the fact tha…
The theory of the time value of money refers to the fact that
The value of any asset is best described as its
The value of any asset is best described as its
When a bond is first issued, which of the following is fixed…
When a bond is first issued, which of the following is fixed for the life of the bond?
An investor typically demands a return due to _______ and al…
An investor typically demands a return due to _______ and also due to _______.
FDIC insurance protects
FDIC insurance protects
A bondholder should require a return equal to the ______. Hi…
A bondholder should require a return equal to the ______. Hint: Remember, what is true about the coupon rate?
What are the sources of capital for a firm?
What are the sources of capital for a firm?