Sophia Principles of Finance Milestone 2

Bill wants to buy a bond whose face value is substantially higher than its market price. What kind of bond should he buy?  Inflation-linked  Government  Zero-coupon  Asset-backed CONCEPT Types of Bonds 2 Which descriptor relates to the income approach for valuing corporations?  Reflects the equilibrium between buyers and sellers of company stock  Multiplies the share price by the number of shares outstanding  Estimates the cost of replacing a company's resources  Involves the capital asset pricing model CONCEPT Valuing the Corporation 3 Select the statement that is true of preferred stock.  Preferred stock is generally thought to be more risky than common stock.  Owners of preferred stock have a stronger claim to a company's assets than owners of common stock.  Preferred stock is not considered equity.  Owners of preferred stock have more voting rights than owners of common stock. CONCEPT Types of Stock 4