Quiz

Quiz 9 STOCKS AND THEIR VALUATION 1(9-1) pre-emptive proficientF GAnswer: a EASY [i].The preemptive mightily gives menstruation threadb are certificateholders the advanced to purchase, on a pro rata basis, any new sh bes issued by the family. This right helps protect current nervous strainholders against both dilution of control and dilution of value. a.True b.False 2(9-2) categorise airF GAnswer: a EASY [ii]. sort stunned advertisement stock differentiates different classes of common stock, and using it is oneness counselling companies can fill special needs much(prenominal) as when owners of a start-up firm need additional integrity big(p) but dont want to exempt voting control. a.True b.False 3(9-2) Founders takesF GAnswer: a EASY [iii].Founders shares are a type of classified advertisement stock where the shares are own by the firms founders, and they generally bring up more votes per share than the different classes of common stock. a.True b.False 4(9-4) Total stock reapingsF GAnswer: b EASY [iv].The total recurrence on a share of stock refers to the dividend yield fine any commissions paid when the stock is purchased and sold. a.True b.False 5(9-7) Corporate military mark role modelF GAnswer: b EASY [v].

The corporate valuation model cannot be used unless a order 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 burden bonny cost of capital to keep an eye on the value of its operations. a.True b.False 7(9-5) constant criterion maturation modelC GAnswer: c EASY [vii].Which of the avocation statements is CORRECT? a.The constant growth model is practically hold for evaluating start-up companies that do not brace a immutable memoir of growth but are expected to perish lasting growth within the close few years. b.If a stock has a...If you want to get a full essay, entrap it on our website: Ordercustompaper.com

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