17- Which one of the following statements regarding stock issuances is true? Sel

Question

17-

Which one of the following statements regarding stock issuances is true?

Select one:

a. They are not always better than debt for raising capital.

b. Dilution of ownership is not a special concern.

c. None of these statements regarding stock issuance is true

d. Their effect on stock price is not a concern.

e. They do not require a company to share future earnings with new shareholders.

18-

What portion of the firms going public in 2014 were unprofitable?

Select one:

a. About one quarter

b. Less than one tenth

c. Nearly all

d. Nearly three quarters

e. About one half

19-

Multidimensional scaling is used in

Select one:

a. perceptual mapping.

b. determining the size of a new building.

c. determining the size of a new department.

d. market segmentation.

e. evaluating the amount of high-tech equipment a firm needs.

20-

Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share, and multiplies this number by the firm's average net income for the past five years?

Select one:

a. Outstanding Shares Method

b. Long-term Asset Method

c. Debt/Equity Method

d. Price-Earnings Ratio Method

e. Current Ratio Method

Explanation / Answer

1. a. the statement which is true about the stock issuance are that they are not always better than the debt for raising the capital.

2. about one quarter , about one quarter portion of the firm going public in 2014 were unprofitable.

3. a. Multidimensional scaling is used in a perceptual mapping.

4. d. Price earning ratio method

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