Your firm uses both preferred and common stock as well as long-term debt to finance its operations. Which one of the following will increase the capital structure weight of the debt, all else equal?
A) an increase in the market price of the common stock
B) an increase in the number of shares of preferred stock outstanding
C) an increase in the quoted price of the firm's bonds as a percentage of face value
D) the exercise of warrants by company employees
E) the conversion of convertible bonds into equity shares
C
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Personal selling refers to people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services
Indicate whether the statement is true or false
Which of the following is true of a proxy election for the board of directors of a corporation?
A) Shareholders must vote for a candidate but do not have the option to allow the proxy committee to vote the shares in any way it sees fit. B) A biographical sketch of each of the candidates for the board of directors is sent to all shareholders. C) Under the National Stock Exchange rules, the proxy committee must use a ballot form to solicit proxies. D) The proxy committee sends only preferred shareholders a statement of resolutions on which the shareholders are to vote.
Low-dividend-payout policy may require less need for additional costly outside financing for the firm
Indicate whether the statement is true or false.
Wal-MartWal-Mart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Wal-Mart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold.Refer to Wal-Mart. Many Wal-Mart stores have a full line of groceries and general merchandise with a wide range of services, such as a pharmacy, portrait studio, optical shop, and bank. Wal-Mart is an example of which type of discount store?
A. hypermarket B. specialty discount store C. extreme-value retailer D. supercenter E. category killer