BUSN 380 Course Great Wisdom / tutorialrank.com BUSN 380 Course Great Wisdom / tutorialrank.com | Page 62

it does not cost anything to sell in the primary market.
repayment doesn't have to be made for 10 years or more.
only interest must be paid for the first 5 years.
it does not have to be repaid.

Question 14. 14. (TCO 5) Which of the following statements is false?
Stockholders elect the board of directors.
Stockholders pay taxes on dividends.
Intelligent investors must be concerned about future after-tax profits.
Dividend payments may not be reduced or omitted at any time.
Corporate dividends may not always be paid in cash.

Question 15. 15. (TCO 5) What is the approximate market value for a
$1,000 corporate bond that pays 7% interest when comparable bonds
are paying 8% interest?
$800
$875
$70
$1,142
$1,000