One person owns a company's bond, and another owns a share of stock. The company makes a profit of $50 during a certain year. The bondholder is owed a coupon payment of $50, and the stockholder is promised a dividend of $50. Which of the following is the likeliest outcome of this situation?

a) The bondholder is paid $50

b) The stockholder is paid $50

c) Each investor is paid $25

d) The company keeps the $50 as retained earnings

e) None of these outcomes are likely to happen

2) Assume you bought a share of stock a year ago at a certain price, and today you need the money, so are forced to sell it even though the price has decreased.

Which of the following statements is true?

a) The stock's dividend yield is negative.

b) The stock's dividend yield is positive.

c) The stock's capital gains yield is negative.

d) The stock's capital gains yield is positive.

e) The stock's current yield is negative.

The correct option for the first question is A,the bondholder is paid $50

The correct option for the second question is C,the stock's capital gains yield is negative

Explanation:

The company has to pay the $50 owed to bondholder as payment of coupon payment takes precedence over payment of dividends.

It would be inappropriate to keep the $50 in retained earnings since there is a covenant in the agreement signed with bondholders that their coupon payment annually is mandatory.

The correct answer to the second question is that the stock's capital gains yield is negative.

Capital gains yield =the price now(which is lower)-original price/original price

Since the numerator would give a negative figure,overall yield is negative

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

answercold,maybe nuclear war;