Based on these ratings, bonds are classified into investment-grade bonds and junk bonds. Which of the following bonds is likely to be classified as an investment-grade bond? a. A bond with a B rating, 11% return on capital, 87% total debt to total capital, and a 26% yield.
b. A bond with a BBB rating, 15% return on capital, 42% total debt to total capital, and a 10% yield.

Astock with a beta of 0.6 has an expected rate of return of 13%. if the market return this year turns out to be 10 percentage points below expectations, what is your best guess as to the rate of return on the stock? (do not round intermediate calculations. enter your answer as a percent rounded to 1 decimal place.)

Which of the following statements is correct? a) due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporationsb) most businesses (by number and total dollar sales) are organized as proprietorships or corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have important tax advantages over proprietorships and partnerships.c) due to legal considerations related to ownership transfers and limited liability, which affect the ability to attract capital, most business (measured by dollar sales) is conducted by corporations in spite of large corporations' less favorable tax treatmentd) large corporations are taxed more favorably than proprietorshipse) corporate stockholders are exposed to unlimited liability

If you offer up your car as a demonstration that you will pay off your loan to a bank or another financial lending institution, you are using your car as collateral. true false