Exam 14: An Overview of Corporate Financing

If you own 1,000 shares of stock and you can cast 5,000 votes for a particular director,then the stock features:

The maximum number of shares that a firm can issue is known as authorized shares.

Suppose a firm sets aside assets to protect particular investors.These assets are called:

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

As a provider of funds to a corporation,owning which of the following corporate securities will give you the most control rights?

Briefly explain the two different types of voting systems used for the election of the board of directors.

The market value of equity equals:

As a provider of funds to a corporation,owning which of the following corporate securities will generally give you the strongest rights to cash flow?

Internally generated cash is calculated as: i.retained earnings; II)interest payments; III)depreciation

LIBOR stands for London Interbank Offered Rate.

The following are the main characteristics of financial intermediaries except: i.they raise money from investors; II)they invest in financial assets; III)they mainly invest in real assets

Financial intermediaries provide the following important functions for the economy: the payment mechanism,borrowing and lending,and pooling of risks.

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 majority voting?

When new securities are sold by a firm,it is termed a:

Different classes of stocks are usually issued in order to: I.maintain ownership control,by holding the class of stock with greater voting rights; II.pay less dividends to different classes of stock; III.extract perquisites without the other class of stockholders knowing

The par value of a firm's stock has little economic significance.

Compared to normal bondholders,convertible bondholders have a greater interest in seeing the firm's stock price increase.

Suppose a group of outsiders solicits shareholders' authority to vote shares to replace existing management.This is called:

Which type of voting allows minority shareholders to allocate their votes in a manner to increase the chance of electing a director?

Generally,nonfinancial U.S.corporations have financed their capital expenditures through: