Unformatted text preview: -Each new bond has a bond indenture-An important point for a bond is its maturity date-Bond default 4. How does the market value of a stock di±er from the book value of a stock? A stock’s real value is its market value, the current price of a share in the stock market. ±he book value for a share of common stock is determined as the ³rm’s owners’ equity divide by the number of common shares owned by all shareholders. 5. How do ³rms meet their needs through debt ³nancing and equity ³nancing? Debt ³nancing long-term borrowing from sources outside the company via loans or the sale of corporate bonds is a major component in most U.S. ³rms’ ³nancial planning. Equity ³nancing looking inside the company for long-term funding is someTmes preferable....
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- Spring '14