If management perceives the current market equity value of their shares to be OVER valued, then management should:
A) issue new shares later after stock prices have come down so as not to further increase the price dilution found when issuing shares.
B) issue new shares now to take advantage of the market mispricing, but only if they believe the market is at least momentarily inefficient.
C) wait to issue until prices are UNDER valued so that there option values increase more rapidly. However, they would only do this if they have the best interest of shareholders in mind.
D) recommend that existing shareholders buy more shares at current market prices because they are so valuable.
B
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Social media and other communication technologies have created a major new challenge:
A) competing in the global marketplace. B) researching and developing new products and services. C) communicating up and down the corporate supply chain. D) attracting and recruiting qualified applicants for employment. E) responding to online rumors and attacks on a company's reputation.
A fixed price is essential to the creation of a binding sales contract.
Answer the following statement true (T) or false (F)
________ is the key to effective variance analysis and involves taking action only when actual and planned results differ significantly
a. Management by goal b. Management by walking around c. Management by objective d. Management by exception
If D1 = $1.50, g (which is constant) = 6.5%, and P0 = $56, what is the stock's expected capital gains yield for the coming year?
A. 6.50% B. 6.83% C. 7.17% D. 7.52% E. 7.90%