The Authors Refer to Companies That Have Access to a ________

question 59

Multiple Choice

The authors refer to companies that have access to a ________ as MNEs, and firms without such access are identified as ________.

• A) global cost and availability of capital; domestic firms
• B) large domestic capital market; geographically challenged
• C) world financial markets; antiquated
• D) none of the above

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and often pays dividends.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over its entire term and repays the principal at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, accounting for both interest payments and the adjustment of the bond price to its face value.

Par Value

The face value of a bond or the stock value stated in the corporate charter, often used in bond trading.