For an investor who plans to purchase a bond maturing in one year, the primary consideration should be: Yield to maturity. The yield to maturity on a bond with a price equal to its par value will: Always be equal to the coupon rate.
The four basic sources of long-term funds for the business firm are: long-term debt, common stock, preferred stock, and retained earnings. The firm's optimal mix of debt and equity is called its: Target capital structure. The cost to a corporation of each type of capital is dependent upon:
Prices of actively traded stocks do not differ from their true values in an efficient market.