Reasons for issuing Preferred Stock
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Reasons for issuing
a. To raise funds without giving up control
b. To boost the return for common
shareholders
c. To reduce stock dividends/splits
d. All of the above
e. None of the above
f. Only a above
g. Only b above
h. Only a and b above
Explain why...
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Solved in 2 steps
- The disposition effect: a. Is the tendency of stock investors to sell their winning stocks and hold onto their losing stocks b. Is consistent with regret avoidance behaviour c. Is a consequence of investors’ preference for lottery-type stocks d. (a) & (b) e. (a), (b) & (c)4. When preference share is cumulative, preferred dividends not declared in a period are a. called dividends in arrears b. Distribution of earnings c. never paid d. considered a liabilityManagers of firms may consider a stock repurchase when they believe their stock is ____ by the market, or a offering when they believe their stock is by the market. undervalued; undervalued O overvalued; overvalued O undervalued; overvalued O overvalued; undervalued O none of the above 2255
- Give typing answer with explanation and conclusion Preferred equity is stock with dividend __ over __ stock, normally with a __ dividend rate, and sometimes __ voting rights. Word bank: common without priority with insignificance variable fixed regular15. Why do investors invest in stocks? i. Wide range of choices ii. Easy to monitor iii. high return without risk iv. Managed by professional managers A. 1,i and ii B. I,iii and iv C. I, ii and iv D. All of the aboveSince the firm issued new stocks, I calculated two cost of retained earnings (one is rs which is the cost of internal equity or the firm's retained earnings, while the other is re or the cost of the external equity by raising issuing new stock), what should I use in solving the WACC?
- Nizwa investment company is willing to buy the equity shares directly from various companies as they think that buying the shares at the first moment will always give benefits for long timeThe market from where this transaction will be carried out is termed as a.Primary Market b.Regular Market c.Secondary Market d.None of the options A financial statement which shows the status of the worth of a company on a certain date is known as a.Cash flow statement b.Balance Sheet c.All of the optionssolve plz !!![S1] If an individual stock's beta is higher than 1, that stock is riskier than the market. [S2] In determining the estimated cost of equity, the CAPM explicitly recognizes a firm’s risk but it does not rely on any dividend assumptions or growth of dividends.a. both are trueb. both are falsec. S1 is trued. S2 is true
- 4. What forms of market efficiency are violated if investors overreact to good news, resulting in stock price increases followed by stock price decreases: a. Semi-strong form efficiency b. Strong-form efficiency c. Both 1 and 2 d. Neither 1 nor 2true or false.c. Par-value stock is worth more than no-par value stockWhich of the following is true? None of the others A call on a stock plus a stock the same as a put A long call is the same as a short put A short call is the same as a long put
