According to the signaling theory to explain differences in firms' capital structures, an announcement of a new stock issue by a mature, seasoned firm that has numerous financing alternatives generally is seen as a signal that the its future prospects are very positive.
Answer the following statement true (T) or false (F)
False
The announcement of a stock offering by a mature firm that seems to have multiple financing alternatives is taken as a signal that the firm's prospects as seen by its management are not bright and the management wants to bring in new investors to share the losses. See 12-5: Capital Structure Theory
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Which is a trait of excessive control?
A. trying to recoup “sunk costs” B. putting agreement ahead of good problem-solving C. combines high power with low visibility D. continuing in a failed course of action
Being the overall low-cost provider in an industry has the attractive advantage of
A. giving the firm a very appealing brand image. B. building strong customer loyalty and locking customers into its product because customers have high switching costs. C. putting a firm in the best position to win the business of price-sensitive customers and earn profits by setting the floor on market price. D. putting the company in a strong position to be more profitable than companies pursuing a differentiation strategy. E. greatly reducing the strong bargaining power of rivals with the key distributors.
How does a transnational strategy differ from a multidomestic or a global strategy?
What will be an ideal response?
An _______________________________ is a "neutral" employee of the company that facilitates discussions and informally mediates between employees and managers to help them resolve workplace disputes.
Fill in the blank(s) with the appropriate word(s).