| Book Edition | 15th Edition |
| Author(s) | Brigham |
| ISBN | 9781337395250 |
| Publisher | Cengage Learning |
| Subject | Finance |
Define each of the following terms:
a. Production opportunities; time preferences for consumption; risk; inflation
b. Real risk-free rate of interest, r*; nominal (quoted) risk-free rate of interest, rRF
c. Inflation premium (IP)
d. Default risk premium (DRP)
e. Liquidity premium (LP); maturity risk premium (MRP)
f. Interest rate risk; reinvestment rate risk
g. Term structure of interest rates; yield curve
h. "Normal" yield curve; inverted ("abnormal") yield curve; humped yield curve
i. Pure expectations theory
j. Foreign trade deficit
Congress felt there was a need for additional investor protections against inaccurate information from companies.
In 2002, Congress passed this act to protect shareholders, employees and the public from accounting errors and fraudulent financial practices. There were 3 key provisions:
The Sarbanes-Oxley act, passed by Congress in 2002, is intended to improve the accuracy of information which is made public by both board members and shareholders of public companies.
