Examlex

Solved

Lowell Arden Bought and Sold Shares for a Profit

question 20

Multiple Choice

Lowell Arden bought and sold shares for a profit.The profit Arden earned on his investment in shares is known as which of the following?


Definitions:

Annual Coupon

The annual interest payment made to bondholders, expressed as a percentage of the bond's face value.

Face Value

The nominal value printed on a bond or stock certificate that indicates the amount due at maturity for bonds or the value of a share of a stock.

After-Tax Cost of Debt

The net cost to a company for borrowing funds after factoring in tax deductions on interest expenses.

Coupon Rate

The yearly rate of interest that the issuer of a bond pays to bondholders, typically shown as a percent of the bond's nominal value.

Related Questions