Test Bank for Principles of Finance 6th edition by Scott

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Test Bank for Principles of Finance 6th edition by Scott Besley Eugene F Brigham. Link full download test bank http testbankcollection com download test bank for principles of finance 6th. edition by besley and brigham, Link full download solutions manual http testbankcollection com download solutions manual for principles. of finance 6th edition by besley and brigham,DIFFICULTY Easy. ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge,Business Program 6 Reflective Thinking. DISC FIN 01 Stocks and Bonds,Time Estimate a 5 min. TOPICS Bond Indenture, 4 The terms and conditions to which a bond is subject are set forth in its.
a Debenture,b Underwriting agreement,c Indenture,d Restrictive covenants. e Call provision,DIFFICULTY Easy,ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge. Business Program 6 Reflective Thinking,DISC FIN 01 Stocks and Bonds. Time Estimate a 5 min,TOPICS Bond Indenture, 5 All of the following may serve to reduce the coupon rate that would otherwise be required on a bond issued at. par except a,a Sinking fund,b Restrictive covenant.
c Call provision,d Change in rating from Aa to Aaa. e None of the above all may reduce the required coupon rate. DIFFICULTY Easy,ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge. Business Program 6 Reflective Thinking,DISC FIN 01 Stocks and Bonds. Time Estimate a 5 min,TOPICS Bond Coupon Rate, 6 Which of the following factors does not influence a firm s long term financing decisions. a Its target capital structure, Cengage Learning Testing Powered by Cognero Page 2.
2015 Cengage Learning All Rights Reserved May not be copied scanned or duplicated in whole or in part except for use as permitted in a. license distributed with a certain product or service or otherwise on a password protected website for classroom use. Test Bank for Principles of Finance 6th edition by Scott Besley Eugene F Brigham. Link full download test bank http testbankcollection com download test bank for principles of finance 6th. edition by besley and brigham, Link full download solutions manual http testbankcollection com download solutions manual for principles. of finance 6th edition by besley and brigham,b Maturity matching considerations. c Comparative costs of financing alternatives,d Availability of collateral. e All of the above factors may influence a firm s long term financing decisions. DIFFICULTY Easy,ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge. Business Program 6 Reflective Thinking,DISC FIN 03 Capital Budgeting and Cost of Capital.
Time Estimate a 5 min,TOPICS Long Term Financing, 7 Common equity refers to the sum of which of the following balance sheet accounts. a Common stock and retained earnings,b Book value retained earnings and common stock. c Common stock additional paid in capital retained earnings. d Either answer a or c above could be correct depending on whether the firm has par or no par stock. e Both b and c are correct since additional paid in capital is equivalent to book value. DIFFICULTY Easy, ACCREDITING STANDARDS Blooms Taxonomy 3 Comprehension. Business Program 6 Reflective Thinking,DISC FIN 01 Stocks and Bonds. Time Estimate a 5 min,TOPICS Common Equity, 8 The preemptive right is important to shareholders because it.
a Allows management to sell additional shares below the current market price. b Protects the current shareholders against dilution of ownership interests. c Is included in every corporate charter,d Will result in higher dividends per share. e The preemptive right is not important to shareholders. DIFFICULTY Easy,ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge. Business Program 6 Reflective Thinking,DISC FIN 01 Stocks and Bonds. Time Estimate a 5 min,TOPICS Preemptive Rights, Cengage Learning Testing Powered by Cognero Page 3. 2015 Cengage Learning All Rights Reserved May not be copied scanned or duplicated in whole or in part except for use as permitted in a. license distributed with a certain product or service or otherwise on a password protected website for classroom use. Test Bank for Principles of Finance 6th edition by Scott Besley Eugene F Brigham. Link full download http testbankcollection com download test bank for principles of finance 6th edition by besley. and brigham,Chapter 02, 9 Companies can issue different classes of common stock Which of the following statements concerning stock classes is.
a All common stocks fall into one of three classes A B and C. b Most firms have several classes of common stock outstanding. c All common stock regardless of class must have voting rights. d All common stock regardless of class must have the same dividend privileges. e None of the above statements is necessarily true. DIFFICULTY Easy,ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge. Business Program 6 Reflective Thinking,DISC FIN 01 Stocks and Bonds. Time Estimate a 5 min,TOPICS Classes of Stock,10 Which of the following statements is correct. a One danger a family owned business faces when it goes public is the loss of absolute voting control of the. company because there is no way to keep new stockholders from voting. b The market is less active for small companies shares so these stocks must be included on the SEC s list in. order to inform investors of their existence Therefore listed shares as the term is generally used refers to. shares of smaller as opposed to larger companies, c Before a company can offer a new issue of common stock to the public it must get approval from the SEC. for the price at which the stock can be sold If the SEC thinks the proposed price is too high then the. company s prospectus is rejected and the stock cannot be sold. d The preemptive right refers to stockholders right to elect a company s board of directors. e Each of the above statements is false, RATIONALE Different classes of stock can be issued which can keep new stockholders from voting for.
a certain number of years Listed shares are those that are on an exchange Exchanges. have minimum net income and share requirements thus these companies would be large. rather than small The SEC does not approve the price at which new securities are. offered The preemptive right gives old stockholders the right to purchase additional. shares of common stock on a pro rata basis,DIFFICULTY Easy. ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge,Business Program 6 Reflective Thinking. DISC FIN 01 Stocks and Bonds,Time Estimate a 5 min. TOPICS Miscellaneous,11 Which of the following statements is correct. Cengage Learning Testing Powered by Cognero Page 4. 2015 Cengage Learning All Rights Reserved May not be copied scanned or duplicated in whole or in part except for use as permitted in a. license distributed with a certain product or service or otherwise on a password protected website for classroom use. Test Bank for Principles of Finance 6th edition by Scott Besley Eugene F Brigham. Link full download http testbankcollection com download test bank for principles of finance 6th edition by besley. and brigham,Chapter 02,a All common stock must have full voting rights.
b While firms are allowed to issue different classes of common stock the Securities and Exchange Commission. SEC requires that each class have the same dividend privileges. c The New York Stock Exchange NYSE allows firms with dual class stock to be listed on the exchange. d In order to increase a stock s liquidity investment bankers generally require that insiders sell some. percentage of their shares after a firm has undergone an initial public offering IPO. e When a firm raises capital investment bankers enter into a best efforts arrangement which guarantees that. the securities will be sold, RATIONALE Statement c is correct For example General Motors has several NYSE listed common. classes Statement a is false because not all common stock has full voting rights. Statement b is false since classes of common can have differing dividend policies. Statement d is false because insider sales tend to depress share prices because they. are a sign that the shares are overpriced Statement e is false because a best efforts. arrangement does not guarantee that the securities will be sold. DIFFICULTY Easy, ACCREDITING STANDARDS Blooms Taxonomy 3 Comprehension. Business Program 6 Reflective Thinking,DISC FIN 01 Stocks and Bonds. Time Estimate a 5 min,TOPICS Miscellaneous, 12 An option which gives the holder the right to sell a stock at a specified price at some time in the future is called a n. a Call option,b Put option,c Out of the money option.
d Naked option,e Covered option,DIFFICULTY Easy,ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge. Business Program 6 Reflective Thinking,DISC FIN 01 Stocks and Bonds. Time Estimate a 5 min,TOPICS Options,13 Pure options are instruments that are. a Created by investors outside the firm, b Bought and sold primarily by investors and speculators. c Of greater importance to investors than to financial managers. d All of the above, Cengage Learning Testing Powered by Cognero Page 5.
2015 Cengage Learning All Rights Reserved May not be copied scanned or duplicated in whole or in part except for use as permitted in a. license distributed with a certain product or service or otherwise on a password protected website for classroom use. Test Bank for Principles of Finance 6th edition by Scott Besley Eugene F Brigham. Link full download http testbankcollection com download test bank for principles of finance 6th edition by besley. and brigham,Chapter 02,e None of the above,DIFFICULTY Easy. ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge,Business Program 6 Reflective Thinking. DISC FIN 01 Stocks and Bonds,Time Estimate a 5 min. TOPICS Pure Options, 14 Your Aunt Agatha purchased a call option a few months ago Today is the expiration date so she must decide. whether to exercise the option Which of the following statements is correct Do not consider brokers commissions in. your answer, a Aunt Agatha doesn t need to make a decision about exercising the option today in fact it would be better if.
she waited until after the option expires, b Aunt Agatha should exercise the option if the price of the stock is less than the exercise or strike price. c Aunt Agatha should exercise the option if the price of the stock is greater than the exercise or strike price. d Aunt Agatha should exercise the option regardless of the current stock price. e None of the above,DIFFICULTY Easy,ACCREDITING STANDARDS Blooms Taxonomy 1 Analyzing. Business Program 6 Reflective Thinking,DISC FIN 01 Stocks and Bonds. Time Estimate a 5 min,TOPICS Options, 15 Which of the following are generally considered advantages of term loans over publicly issued bonds. a Lower flotation costs, b Speed or how long it takes to bring the issue to market.
c Flexibility or the ability to adjust the bond s terms after it has been issued. d All of the above,e Only answers b and c above,DIFFICULTY Easy. ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge,Business Program 6 Reflective Thinking. DISC FIN 01 Stocks and Bonds,Time Estimate a 5 min. TOPICS Term Loans, Cengage Learning Testing Powered by Cognero Page 6. 2015 Cengage Learning All Rights Reserved May not be copied scanned or duplicated in whole or in part except for use as permitted in a. license distributed with a certain product or service or otherwise on a password protected website for classroom use. Test Bank for Principles of Finance 6th edition by Scott Besley Eugene F Brigham. Link full download http testbankcollection com download test bank for principles of finance 6th edition by besley. and brigham,Chapter 02,16 Eurodebt is the term used to designate.
a Debt sold by a foreign borrower that is denominated in the currency of the country where it is sold. b European bank loans that are denominated in the new Euro currency. c Debt that is denominated in a currency that is different than the currency of the country in which it is sold. d Equity instruments of one country that are sold in another country. e The certificates that represent ownership in foreign companies that are sold in the United States. DIFFICULTY Moderate,Business Program 6 Reflective Thinking. DISC FIN 04 International Financial Management,Time Estimate a 5 min. TOPICS International Debt Instruments,17 An American Depository Receipt ADR represents. a Debt sold by a foreign borrower that is denominated in the currency of the country where it is sold. b Stock of foreign companies that is sold directly to investors in the United States. c Equity instruments of one country that are sold in another country. d The certificates that represent ownership in foreign companies that are sold in the United States. e Certificates representing ownership in stocks of foreign companies that are held in trust by a bank located. in the country the stock is traded,DIFFICULTY Moderate. ACCREDITING STANDARDS Blooms Taxonomy 5 Knowledge,Business Program 6 Reflective Thinking.
DISC FIN 04 International Financial Management,Time Estimate a 5 min. TOPICS International Debt Instruments, 18 Which of the following types of debt protect a bondholder against an increase in interest rates. a Floating rate debt, b Bonds that are redeemable putable at par at the bondholde. Test Bank for Principles of Finance 6th edition by Scott Besley Eugene F Brigham Link full download test bank http testbankcollection com download test bank for

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