Question

A firm issued 10,000 shares of $2 par-value common stock, receiving proceeds of $40 per share....

A firm issued 10,000 shares of $2 par-value common stock, receiving proceeds of $40 per share. The amount recorded for the paid-in capital in excess of par account is ______.


Answer 1
$380,000
Bonds which sell at less than face value are priced at a ______, while bonds which sell at greater than face value sell at a ______.


Answer 2
Choose...
____________. is upward-sloping and indicates generally cheaper short-term borrowing costs than long-term borrowing costs.

Answer 3
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The attempt by a non-management group to gain control of the management of a firm by soliciting a sufficient number of proxy votes is called a________


Answer 4
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A firm has an outstanding issue of 1,000 shares of preferred stock with a $100 par value and an 8 percent annual dividend. The firm also has 5,000 shares of common stock outstanding. If the stock is cumulative and the board of directors has passed the preferred dividend for the prior two years, how much must the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year

Answer 5
Choose...
______ are popular vehicle used to finance mergers and takeovers.


Answer 6
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A common approach of estimating the variability of returns involving the forecast of pessimistic, most likely, and optimistic returns associated with an asset is called

Homework Answers

Answer #1

Answer 2

Bonds which sell at less than face value are priced at a discount, while bonds which sell at greater than face value sell at a Premium.

Answer 3

Yield Curve is upward-sloping and indicates generally cheaper short-term borrowing costs than long-term borrowing costs.

Answer 4

The attempt by a non-management group to gain control of the management of a firm by soliciting a sufficient number of proxy votes is called a Proxy Bettle

Answer 5

Amount paid to Preferrred Stoock holders = Past Two Years Dividend+Current year Dividend

= 24%

that means Dividend to be paid to prefred stockholder= $100*24% = $24*1000shares = $24000

Answer 6

A common approach of estimating the variability of returns involving the forecast of pessimistic, most likely, and optimistic returns associated with an asset is called Sensitivity analysis.

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