Answer the following statement(s) true (T) or false (F)
1. Equity securities are loans from shareholders that must be repaid.
2. One advantage to the issuance of equity securities over debt securities is that it maintains a lower debt-to-equity ratio for the corporation.
3. The most common method of equity financing is the issuance of common stock in exchange for cash.
4. In states following the Model Business Corporation Act, the corporation must have stock issued at all times that guarantees that there are shareholders with the necessary voting rights to take any required corporate actions.
5. In the event that no designation is made in the articles of incorporation, if there is only one class of stock authorized, that stock is considered to be common stock.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
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The market rate of interest for a bond issue that sells for more than its par value is
a. less than the rate stated on the bond. b. equal to the rate stated on the bond. c. higher than the rate stated on the bond. d. independent of the rate stated on the bond.
Compare the European airline industry at the beginning and at the end of the 1990s. What changed? How did airline companies react to these changes?
What will be an ideal response?
A method of demonstrating that an employment selection device reflects the content of the job for which employees are being selected is:
a. construct validity. b. Four-Fifths Rule. c. content validity. d. disparate impact.
Interest rates required by a variable interest rate mortgage (VIRM) typically are capped (i.e., limited) as to how much they can be adjusted at any one time
Indicate whether the statement is true or false