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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
Question 16. 16. (TCO 5) The _____ is the financially independent
firm or individual that acts as the bondholders' representative.
trustee
president of the corporation
debenture holder