The financial manager of a well-regarded book publishing firm wishes to buy a small Internet publishing company to provide an avenue for sale of its materials online
In order to raise the funds to make this purchase, the financial manager decides to sell more stock in the company. How is the financial manager raising funds in this case?
A) by increasing the debt burden carried by the company
B) by raising the company's equity by encouraging new owners to take a stake in the company
C) by decreasing the ratio of equity to debt held by the company
D) by increasing the value of shares held by the existing owners of the company
Answer: B
You might also like to view...
In comparison to the manufacturing economy of the 1960s, today's market involves a greater focus on all of the following EXCEPT which one?
A) market segmentation B) relationship marketing C) mass marketing D) targeting E) positioning
In an effort to help one of her corporate customers avoid paying a large amount for
income tax, Jenny an accountant provided an inaccurate financial statement to the company which later submitted it in support of its tax return. The fraud was discovered by Revenue Canada. Which of the following statements is correct? A) Jenny may be held liable for up to 50% of the amount of the fraud. B) Jenny may be held liable for up to 75% of the amount of the fraud C) Jenny may be held liable for up to 100% of the amount of the fraud D) Jenny may be held liable for up to 25% of the amount of the fraud E) Jenny may be held liable for up to 40% of the amount of the fraud
Hailey Wilson loves to cook and receives unqualified praise whenever she prepares a meal for someone. Encouraged by these compliments and eager to put her culinary talents to good use, Hailey decides to open a small neighborhood restaurant. Since she plans to maintain complete control of the business, she will most likely organize it as a
A. limited partnership. B. corporation. C. general partnership. D. cooperative. E. sole proprietorship.
On February 19, 2016, Angela purchased 100 shares of BRD stock at a total cost of $3,425. She received a total of $250.00 in dividends and sold the stock today, February 22, 2017 for $3,692
Angela has a marginal tax rate of 28%. The tax rate on dividend income and long-term capital gains is 15%. What is Angela's after-tax holding period return on her investment in BRD stock? A) 15.1% B) 12.8% C) 10.9% D) 7.8%