Exam 14: An Overview of Corporate Financing

A firm has $100 million in current liabilities, $200 million in long-term debt, $300 million in stockholders' equity, and total assets of $600 million.Calculate the firm's ratio of long-term debt to long-term debt plus equity.

The rare event in which a firm's existing directors and management compete with outsiders for the effective control of the corporation is called a

The following are characteristics of preferred stock except it

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?

In the United Sates, who holds the smallest portion of corporate equities?

Exploitation of minority shareholders by majority shareholders is called

Which voting system is most friendly towards minority shareholders?

Why do firms rely heavily on internal funds?

Preference in position among creditors when it comes to repayment is called

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

The change in a firm's retained earnings is

Briefly list the various functions of financial institutions.

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

Different classes of stocks are usually issued in order to

Shares held by investors are known as

A firm has $100 million in current liabilities, $200 million in long-term debt, $300 million in stockholders' equity, and total book assets of $600 million.There are 100 million shares outstanding with a share price of $16.Calculate the debt ratio for the firm.

Which of the following are not usually regarded as investment funds?

Generally, managers of corporations prefer internally generated cash to finance their capital expenditures because

Internally generated cash is calculated as

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