Exam 14: An Overview of Corporate Financing

If you own 1,000 shares of common stock of a firm and there are five directors being elected, What is the maximum number of votes you can cast for a particular director under cumulative voting?

Different classes of stocks are usually issued to: I. Maintain ownership control by holding the class of stock with greater voting rights II. Pay less in dividends between the classes of stock III. To extract prerequisites without the other class of stockholders knowing

The premium paid by investors to gain voting control, among the countries mentioned, is the highest in:

The equity accounts of Bio-Tech Company is as follows: Suppose that the firm sells 2,000,000 new shares at a price of $20/share. What is the new value of the additional paid-in-capital account?

Exploitation of minority shareholders by the majority shareholders is called:

On the average, firms of the following countries have higher levels of debt ratios (after adjusting for accounting differences) except:

Shares held by the investors are known as:

Why do firms rely heavily on internal funds?

Internal funds make up more than two-thirds of corporate financing in the following countries: I. The United States II. U.K. III. Germany IV. Japan

Maximum number of shares that can be issued by a firm is called

A firm cannot finance a long-term project using short-term debt.

A grant of authority allowing someone else to vote shares of stock that you own is called a: I. Power of share authorization II. Proxy voting III. Restricted conveyance

Debt due after one year or more is called long-term debt.

Dual class shares are often created to give one group of owners more power over the company than another.

On the average, firms (manufacturing industry) of the following countries have lower levels of debt ratio (after adjusting for accounting differences) except:

On the average, firms (manufacturing sector) of the following countries have about average levels of debt ratio (after adjusting for accounting differences) except:

Briefly discuss some of the features that would increase the value of a corporate bond?

When new securities are sold by a firm, it is called

Minority shareholders can also be represented on the board of directors under:

Briefly explain various functions of financial institutions.