ABC Corporation is selling additional shares of common stock. These are new shares of stock, and have never been sold or traded previously. The selling of these shares would take place in the ________ market
A) primary
B) secondary
C) tertiary
D) quaternary
E) none of the above
Answer: A
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A(n) ______________ leader is a very dangerous position for a manager to establish with other employees within the firm because this leader would have destroyed all three critical traits of a moral person.
a. Unethical b. Ethical c. Hypocritical d. Inconsistent
In a short sale the lender agrees to receive less than the full value of the mortgage
Indicate whether the statement is true or false.
Ray Stokes is raising capital for a new company called NO Balloons Inc NO Balloons will manufacture and sell festive balloons. Because of the shortage of helium, the balloons will be filled with nitrous oxide instead
NO Balloons plans to finance the business with common equity and long-term debt. It plans to sell 12 million shares of common stock and 200,000 bonds. Each bond will have a coupon rate of 5%, will pay its coupons semi-annually and will have a face value of $1,000.The common stock will be issued at a price of $19.5 a share and has a beta of 1.1. The bonds will sell for 89% of face value and have a 6.25% yield to maturity. The market risk premium is 5.25%, T-bills are yielding 3.5%, and NO Balloons' tax rate is 36%. What is NO Balloons' cost of equity? A) 5.25% B) 7.75% C) 8.75% D) 9.28% E) 9.63%
From a financial management perspective, all of the following are primary risks associated with an international trade transaction EXCEPT:
A) currency risk B) default risk C) noncompletion risk D) interest rate risk