Quiz

Quiz 9 STOCKS AND THEIR VALUATION

1(9-1) Preemptive proficientF GAnswer: a EASY

[i].The preemptive right gives current stock certificateholders the right to purchase, on a pro rata basis, any new shares issued by the firm. This right helps protect current stockholders against both dilution of control and dilution of value.




a.True

b.False



2(9-2) categorise stockF GAnswer: a EASY

[ii]. sort out advertisement stock differentiates different classes of common stock, and using it is one counselling companies can meet special needs such as when owners of a start-up firm need additional equity big(p) but dont want to relinquish voting control.




a.True

b.False



3(9-2) Founders sharesF GAnswer: a EASY

[iii].Founders shares are a type of classified stock where the shares are owned by the firms founders, and they generally constitute more votes per share than the other classes of common stock.




a.True

b.False



4(9-4) Total stock reapingsF GAnswer: b EASY

[iv].The total return on a share of stock refers to the dividend yield slight any commissions paid when the stock is purchased and sold.




a.True

b.False



5(9-7) Corporate military rank role modelF GAnswer: b EASY

[v].



The corporate valuation model cannot be used unless a company pays dividends.




a.True

b.False



6(9-7) shrive cash flows and valuationF GAnswer: a EASY

[vi].Projected free cash flows should be discounted at the firms burden average cost of capital to find the value of its operations.




a.True

b.False



7(9-5) constant quantity growth modelC GAnswer: c EASY

[vii].Which of the following statements is CORRECT?

a.The constant growth model is practically appropriate for evaluating start-up companies that do not have a immutable history of growth but are expected to perish stable growth within the next few years.

b.If a stock has a...If you want to get a full essay, entrap it on our website: Orderessay



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