The following is an outline ofcertain potential benefits aswell as costs associated withthe cross-border listings ofstocks:(i) - the company can expandits potential investor base(ii) - issues involving thedisclosure and listingrequirements(iii) - creates a secondarymarket for the company'sshares(iv) - liquidity(v) - volatility spillover from theoverseas markets(vi) - control of the companyby foreigners(vii) - enhances the visibility ofthe company's name and itsproducts in foreignmarketplacesWhich of the followingrepresent all the potentialCOSTS of the cross-borderlistings of stocks?O (i), (iii), (iv), and (vii)○ (ii). (v), and (vi)(ii), (iv). (vi), and (vii)(iv). (v), (vi), and (vii)(i), (ii), and (iii)

Cross-border listing refers to the process by which a company's shares are listed for trading on a…

Answered: The following is an outline of certain…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

What is the vaule of harmonizing accounting standards for global equity markets?
i)discuss accounting issues in risk management, and explain the following terms: fair value hedge, cash flow hedge, foreign investment hedge, speculation ii)discuss some of the famous cases in which the lack of proper risk management policies and procedures have caused companies to incur large losses. iii)explain some general guidelines that senior management should follow to set up and maintain an effective risk management system. iv)explain how a currency swap can be used to hedge a stream of foreign cash flows. v)define interest rate derivatives, and compare and contrast them against bond derivatives.
We discussed several explanations for dividend levels by various firms. Which of the following would best help achieve the primary objective? A. Firms should be reluctant to increase dividends B. Taking into account taxes and costs, dividends are irrelevant C. Dividend decisions should be made with a perspective on the cost of capital, project analysis, and shareholder value D. Signaling should be the most important consideration E. None
Which of the following is correct a. In a leveraged recapitalization, a firm uses its excess cash to buyback shares b. In an LBO, a firm borrows and repurchases its shares thereby reducng the number of shares outstanding. c. In a leveraged recapitalization, a change of ownership occurs as the firm is sold d. In an LBO, debt is a major component of the financing and a change of control occurs. e. In an LBO, managers use excess cash to repurchase shares
Discuss the arguments for each position. Some individuals maintain that the only proper accounting treatment for all marketable securities is current value, while others maintain that this treatment might allow companies to manage earnings.
Which one of the following statements about dividend policies is FALSE? a. One advantage of dividend reinvestment plans is that they allow shareholders to maintain a position in a company with minimal trading. b. One key disadvantage of a residual dividend policy is that it makes it hard for a company to follow a stable dividend policy. c. The clientele effect suggests that brokerage companies should choose customers whose dividend preferences match those of their client service borkers. d. The "bird-in-the-hand effect" is the argument that investors prefer dividends to capital gains because dividends are more certain than capital gains. e. In today's tax environment, gains through stock repurchases and dividend payments are taxed at the same rate
In its quest for global expansion Lewis Fabrication must examine its rationales for wanting to expand into the foreign marketplace. Which one of the following is not a reason why this company would want to expand globally? * To maximize shareholder wealth To minimize risk of failure for the business To increase the revenues of the company To cut costs of production for the company To reduce risks associated with business cycle fluctuations
What business risks does Toll Brothers face that may threaten the company’s ability tosatisfy stockholder expectations? What are some examples of control activities that thecompany could use to reduce these risks? (Hint: Focus on pages 10–11 of the 10-K.)
Which of the following statements is true? Group of answer choices a. Dividend payments are attractive to executives who hold many executive stock options that were awarded to them by their firms b.Executives and other insiders benefit most by being able to tender their shares in an open market repurchase since they usually are privy to information that is not available to the general public c.Empirical research suggests that small, retail investors prefer stock repurchases to dividend payments d. a firm does not pay dividends, some institutional investors are prohibited from investing it the firmʹs equity
Which of the following statements correctly describes the nature of direct financing as discussed in lectures? Group of answer choices A. More than one of the other answers is correct B. It is the source of financing whenever an investor purchases shares that are listed on the Australian Securities Exchange. C. None of the other answers is correct D. May involve an individual investor buying shares in a company when a company goes public via an initial public offering. E. It relies upon an intermediary to facilitate the flow of funds from surplus to deficit units, unlike indirect financing I answered D, is it correct?
Explain how you will manage each of these situations. Your company invests in overseas companies paying high dividends. Due to COVID-19, foreign companies have reduced their dividend payouts.
Empirical evidence suggests that IPO issues are generally: priced efficiently by the market. overpriced by investor excitement concerning a new issue. underpriced resulting from SEC regulation. underpriced, in part, to facilitate the issue. overpriced resulting from SEC regulation.

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