One implication of information asymmetry between investors and firm managers is that if the firm raises new capital by issuing debt rather than by selling stock, it will signal that the firm has very good prospects.?
Answer the following statement true (T) or false (F)
True
A firm with very favorable prospects will try to avoid selling stock and, rather, will raise any required new capital by other means, including using debt beyond the normal target capital structure. See 12-5: Capital Structure Theory
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In the context of attitudes and organizational citizenship behaviors (OCBs), affect tends to direct OCBs toward other organizations.
Answer the following statement true (T) or false (F)
Which of the following statements is true of a restrictive indorsement?
A. It includes indorsements for collection, which are commonly put on by banks involved in the collection process, and indorsements for deposit. B. A person who purchases a check indorsed "for collection" automatically converts it even if the indorser received the amount paid for it. C. If an indorser merely signs his name and does not specify to whom the instrument is payable, he has indorsed the instrument in restriction. D. A person who takes an instrument with a restrictive indorsement should not pay for the instrument consistently with the indorsement.
What is the goal of evaluating the organization, style and tone of a message?
A) To improve readability B) To produce efficient writing that is easy to skim C) To make sure content is clear, logical and reader oriented D) To make sure there is a variety of sentence lengths E) To make sure your credibility is not affected by errors
Use this information to answer the following question. Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year: 1 . Sold machinery for $9,000 cash. 2 . Purchased a building for $80,000 cash. 3 . Issued $70,000 worth of stock to acquire an airplane. 4 . Converted long-term bonds by issuing $100,000 worth of stock. 5 . Declared and paid a
$10,000 cash dividend. Transaction 3 would be found on the statement of cash flows in the a. cash flows from operating activities section. b. cash flows from financing activities section. c. noncash investing and financing transactions section. d. cash flows from investing activities section.