Suppose Kenji would like to use $3,000 of his savings to make a financial investment. One way of making a financial inve

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Suppose Kenji Would Like To Use 3 000 Of His Savings To Make A Financial Investment One Way Of Making A Financial Inve 1 (29.53 KiB) Viewed 7 times

Suppose Kenji would like to use $3,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose TouchTech, a hand-held computing firm, is selling bonds to raise money for a new lab-a practice known as debt finance. Buying a bond issued by TouchTech would give Kenji an IOU, or promise to pay, from the firm. In the event that TouchTech runs into financial difficulty. Kenji and the other bondholders will be paid first. Suppose instead Kenji decides to buy 100 shares of TouchTech stock. Which of the following statements are correct? Check all that apply. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Kenji's shares to decline. The price of his shares will rise if TouchTech issues additional shares of stock. TouchTech earns revenue when Kenji purchases 100 shares, even if he purchases them from an existing shareholder. Alternatively, Kenji could make a financial investment by purchasing bonds issued by the government of Japan. Assuming that everything else is equal, a bond issued by the government of Japan most likely pays a lower a government that is engaged in a civil war. interest rate than a bond issued by