Review 2 Blank.pdf - S18 ACCT 162 Review 2 Score 1.What is...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
S18 ACCT 162 - Review 2 Score: 1. What is your team number? 2. What are convertible bonds? A Bonds that are secured with collateral B Bonds that may be exchanged for common stock at the option of the bondholders C Bonds that can be bought back for a stated dollar amount D Bonds that mature in installments 3. What are callable bonds? A Bonds that are secured with collateral B Bonds that may be exchanged for common stock at the option of the bondholders C Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer D Bonds that mature in installments 4. Which of the following is an advantage of issuing bonds over stock? A Interest needs to be paid B Tax savings C Stockholder control remains the same D Earnings per share is higher 5. Which of the following is a disadvantage of issuing stock? A Dividends must be paid on a periodic basis. B The price of the stock will decrease. C Stockholder control is affected. D There is no maturity date for when the stock needs to be repurchased. Page 1 of 7
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
6. You have a 60 day loan with 5% interest. The interest rate is quoted on what terms? A Daily B 60 days C Monthly D Yearly 7. Internal financing sources would be: A owners who invest money in the business. B loans from a bank or from family and friends. C a mortgage loan. D All of the above E None of the above. 8. If the market interest rate is lower than the contractual interest rate, bonds will sell: A at a premium.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern