Which of the following statements is TRUE?a.A shareholder's wealth in a firm is equal to the number ofshares that the shareholder owns divided by the stock price.b.The Sarbanes-Oxley Act, passed by Congress in 2002,requires CEOs and CFOs to certify that the firm's balancesheet includes forecasted information.C.A stock trading at a price below its intrinsic value isconsidered to be undervalued.d.The CFO of a corporation is usually in charge of humanresources and administration.mitmetes

The statement which is true is , Option C A stock trading at a price below it's intrinsic value…

Answered: Which of the following statements is a.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

The dividend policy of a company affects: A) Only the company's debt levels B) Shareholders' perception and the stock price C) The national inflation rate D) The country's interest rate policy.
?With regard to stock dividend, which of the following is true .Reduces a corporation's assets and stockholders' equity A .Does not affect total equity, but transfer amounts between the components of equity.B „The decision to declare a stock dividend resides with the shareholders .C Transfers a portion of equity from retained earnings to a cash reserve account.D
What is par value? Select one: a. The price at which a company's stock is sold b. The dollar amount credited to capital stock when issued c. The lowest price at which a company's stock may be issued d. The highest price at which a company's stock may be issued
The shareholders' equity figure on a balance sheet represents what the firm is worth to shareholders. Select one: True False
.What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation? Group of answer choices a. Organization Expense b. Additional Paid-in Capital c. Organization Costs d. Common stock
Which of the following is true about dividends: Group of answer choices Increasing dividends can impact retained earnings. Dividends must always be paid if the company makes profit. Dividends are split equally between stockholders and bondholders. Dividends paid reduce the net income that is reported on a company's income statement.
Which of the following describes preferred stock? a. Stock that sells for a very high price b. Stock that is sold to employees of the company as a performance incentive c. Stock which gives shareholders certain preferences and advantages over common stock d. Stock that is purchased by the corporation for investment purposes
hich of the following is not true about the stockholders' equity section of a balance sheet? a. Stock characteristics are indicated. b. Preferred stock subscriptions receivable, common stock subscriptions receivable, and treasury stock are subtracted from the total of paid - in capital and retained earnings. c. Contra equity accounts are shown at the beginning of the stockholders' equity section of a balance sheet. d. Retained earnings is listed after all paid - in capital.
In the United States and most other countries, the source of capital on which firms most heavily rely is OA. new common stock B. retained earnings OC. long-term debt OD. preferred stock.
What elements and dynamics may have led to a drop in the required rate of return?
In calculating earnings per share, a company uses the treasury stock method when a. it recognizes the assumed impact of exercising outstanding warrants. b. it develops a methodology to handle the premium paid on exercised share options. c. it needs to value the cash received for a convertible bond. d. it needs to value treasury stock repurchased during the year.
Give typing answer with explanation and conclusion The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to a. Maximize its expected EPS. b. Minimize the chances of losses. c. Maximize the stock price on a specific target date. d. Maximize its expected total corporate income. e. Maximize the stock price per share over the long run, which is the stock's intrinsic value.

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