Q) it would be advantageous for a company to issue preferred shares: a) if maket
ID: 1143753 • Letter: Q
Question
Q) it would be advantageous for a company to issue preferred shares:
a) if maket conditions are not favourable to debt issues b) if the company's debt/equity ratio is very high c) if stock prices are depressed d) all of the above e) a and b only
Q) a subordinated voting share:
a) does not vote, except in limited circumstances b) has a limit on the number that can be voted by a person or group c) receives a smaller dividend than other classes d) has fewer voting rights, on a per share basis, than other classes
Q) which of the following is one danger of short selling?
a) short covering activities will increase price b) stock price will decrease c) stock will split while investor is short d) a stock consolidation will occur while the investor is short
Q) the floor value of a convertible bond is:
a) par value b) common equity value c) bond value d) conversion value
Explanation / Answer
1 IF DEBT TO EQUITY RATIO IS VERY HIGH BECAUSE BY THIS ACTION THAT VALUE DECREASES
2 HAS fewer voting rights on a per share basis
3 short covering activities will increase price
4 common equity value
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