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 majority voting?

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

The market value of equity equals

A grant of authority allowing someone else to vote shares of stock that you own is called

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

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

When completing a large debt issue, financial managers of large firms will usually consider the following question(s):

Which of the following are not financial intermediaries?

Which of the following is not a sensible reason for a firm to rely on internal funds?

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

Briefly explain the voting rights of shareholders.

A corporate bond that can be exchanged for a fixed number of shares of stock is called a

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

The following functions, provided by financial intermediaries, enable the smooth functioning of the economy:

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

Which of the following instruments gives the owner the right to purchase securities directly from the firm at a fixed price during a specified period of time?

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

Recently, which of the following sources of funds has played the greatest role in the financing of U.S.nonfinancial firms?

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

In the United States, the premium that an investor needed to pay to gain voting control was what percentage of firm value?