SU MBA6010 Week 2 Knowledge Check Latest 2019 JUNE

MBA6010 Managerial Finance

Week 2 Knowledge Check

Question 1 If a bond is selling above par, then the coupon rate must be higher than the markets for new bonds.

Question 1 options:

True

False

Question 2 If you purchased a bond that was callable and it was called, you would have the option to keep it until maturity.

Question 2 options:

True

False

Question 3 The value of a share of common stock is a function of the dividends expected and the possible price appreciation.

Question 3 options:

True

False

Question 4 One of the most important reasons for stockholders to have the preemptive right is to protect them against dilution.

Question 4 options:

True

False

Question 5 Preferred stock is a mixture of debt and equity.

Question 5 options:

True

False