The interval schedules generally lead to better performance than do ratio schedules,since they are more directly related to the occurrence of the desired behavior.
The basic lesson of M&M Theory is that the value of a firm is dependent upon the:
A) Capital structure of the firm. B) Total cash flows of the firm. C) Percentage of a firm to which the bondholders have a claim. D) Tax claim placed on the firm by the government. E) Size of the stockholders claims on the firm.
Answers will vary. Ceremony: A firm may issue longevity awards (cash or some gift)every five years during one's tenure with the organization in a formal event. Story: A corporate story about a company's founder's first sale to someone in a parking lot becomes corporate folklore and functions to acculturate new employees. Please see the section "Levels of Organizational Culture" for more information.
TB
Answered
Which of the following is an example of reinvestment risk when investing in the bond market?
A) The coupon rate on a bond is 10% and interest rates on similar bonds have risen by 2%. B) The coupon rate on a bond is 10% and interest rates on similar bonds have fallen by 3% C) The coupon rate on a bond is 10% and interest rates on similar bonds are also 10%. D) Reinvestment risk is not a factor in bond investing because bonds offer investors a risk free investment.