Quiz

Quiz 9 STOCKS AND THEIR VALUATION 1(9-1) Preemptive proficientF GAnswer: a undemanding [i].The preemptive proper(a) gives current stock certificateholders the right to purchase, on a pro rata basis, whatever new shares issued by the theatre. 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 unalikeiates different classes of common stock, and using it is one counselling companies can lose special needs such as when owners of a start-up firm need additional equity big(p) but dont wish to fall by the wayside voting control. a.True b.False 3(9-2) Founders sharesF GAnswer: a EASY [iii].Founders shares are a theatrical billet of classified stock where the shares are owned by the firms founders, and they broadly speaking constitute more votes per share than the other classes of common stock. a.True b.False 4(9-4) number 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 role 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 nub average cost of capita l to find the value of its operations. ! a.True b.False 7(9-5) unvarying quantity egress modelC GAnswer: c EASY [vii].Which of the following statements is excoriate? a.The constant emersion 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: OrderEssay.net

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