One person owns a company's bond, and another owns a share of stock. The company makes a profit of $50 during a certain year. The bondholder is owed a coupon payment of $50, and the stockholder is promised a dividend of $50.
Which of the following is the likeliest outcome of this situation?
a) The bondholder is paid $50
b) The stockholder is paid $50
c) Each investor is paid $25
d) The company keeps the $50 as retained earnings
e) None of these outcomes are likely to happen
2) Assume you bought a share of stock a year ago at a certain price, and today you need the money, so are forced to sell it even though the price has decreased.
Which of the following statements is true?
a) The stock's dividend yield is negative.
b) The stock's dividend yield is positive.
c) The stock's capital gains yield is negative.
d) The stock's capital gains yield is positive.
e) The stock's current yield is negative.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “One person owns a company's bond, and another owns a share of stock. The company makes a profit of $50 during a certain year. The ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Husker corporation reports current e& p of negative $200,000 in 20x3 and accumulated e& p at the beginning of the year of $300,000. husker distributed $200,000 to its sole shareholder on december 31, 20x3.
Answers (1)
Jeffrey is so preoccupied by his fear of germs that he always keeps his car and apartment windows sealed tightly, and refuses to allow anyone into his apartment.
Answers (1)
Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.7 ounces of aluminum per can. During the month of April, 450,000 cans were produced using 1,875,000 ounces of aluminum.
Answers (1)
Mae manages delivery at a custom-kitchen outlet. Working with her customer's specifications, she contacts Gem Cabinets and places an order for a full-motion wall mount.
Answers (1)
The compressor division at Norco Corporation can buy the coils it requires either from the company's coil division or from the market.
Answers (1)
New Questions in Business
Barr Corp. started a long-term construction project in 20X0. The following data relate to this project: Contract price $4,200,000 Costs incurred in 20X0 $1,750,000 Estimated costs to complete $1,750,000 Progress billings $900,000 Collections on
Answers (1)
Bob contributed a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 subject to a mortgage of $120,000 in exchange for a 30 percent interest in the Alpha Partnership. Alpha will assume the mortgage on the building.
Answers (1)
Nareen is single, 68 years old, and reports the following in 2018: a. $12,000 alimony received (divorced in 2010) b. $82,520 Schedule C profit c. $3,500 SEP (self-employed pension) plan contribution d. $7,150 qualified dividends e.
Answers (1)
Sun Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2007. What is the annual dividend on the preferred stock? a. $60 per shareb. $30,000 in totalc.
Answers (1)
a risk averse investor, which of the following four otherwise identical investment would you prefer? A. Security W, which exhibits a standard deviation of 2% and offers an average return of 12%. B.
Answers (1)