Why Are Externalities a Necessary Consideration When Conducting Business, Especially

question 25

Multiple Choice

Why are externalities a necessary consideration when conducting business, especially for large corporations?

• A)Externalities always cost money, and those costs hurt a firm's bottom line.
• B)Forgetting to account for externalities is against tax laws in Canada.
• C)The actions a large firm makes can have a significant impact on other firms, and those actions may not necessarily be in Canada's best interests.
• D)all of the above

Identify characteristics and valuation of different types of bonds: coupon, zero-coupon, callable, and convertible bonds.

Calculate the yield to maturity for various bonds.

Understand the concept and calculation of invoice price.

Recognize the implications and interpretations of bond ratings.

---

Definitions:

Bond Issue

The process by which a government or corporation raises funds by selling bonds to investors.

Periodic Payments

Payments made or received regularly over a set period of time, often in context with loans or annuities.

DBRS

DBRS is a globally recognized credit rating agency that provides independent assessments of the creditworthiness of companies and sovereign entities.

Investment Grade

A rating that signifies a municipal or corporate bond presents a relatively low risk of default.