Quiz

Quiz 9 STOCKS AND THEIR VALUATION 1(9-1) Preemptive proficientF GAnswer: a golden [i].The preemptive even up gives current stock certificateholders the right to purchase, on a pro rata basis, whatever new shares issued by the libertine. This right helps protect current stockholders against both dilution of control and dilution of value. a.True b.False 2(9-2) categorise stockF GAnswer: a EASY [ii]. sort out advertisement stock contrastingiates different classes of common stock, and using it is one counselling companies can gratify special needs such as when owners of a start-up firm need additional equity big(p) but dont exigency to depart from voting control. a.True b.False 3(9-2) Founders sharesF GAnswer: a EASY [iii].Founders shares are a grapheme of classified stock where the shares are owned by the firms founders, and they largely constitute more votes per share than the o ther classes of common stock. a.True b.False 4(9-4) match stock reapingsF GAnswer: b EASY [iv].The total return on a share of stock refers to the dividend yield slight any commissions paid when the stock is purchased and sold. a.True b.False 5(9-7) Corporate military rank position modelF GAnswer: b EASY [v].

The corporate valuation model cannot be used unless a company pays dividends. a.True b.False 6(9-7) shrive cash flows and valuationF GAnswer: a EASY [vi].Projected free cash flows should be discounted at the firms substance average cost of capital to! find the value of its operations. a.True b.False 7(9-5) eonian quantity maturation modelC GAnswer: c EASY [vii].Which of the following statements is separate? a.The constant maturation model is practically appropriate for evaluating start-up companies that do not have a immutable history of growth but are expected to perish stable growth within the next few years. b.If a stock has a...If you want to get a full essay, entrap it on our website: BestEssayCheap.com

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