Which of the following is an incorrect statement? a. LIBOR is a reference rate for a...

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Which of the following is an incorrect statement? a. LIBOR is areference rate for a wide range of international transactions b.Typically, corporate bonds pay semi-annual coupons over their livesc. Commercial papers are short-term unsecured debt securities d.Investors like to invest in bonds as generally their couponsincrease when interest rates increase e. Limited liability meansthe most that shareholders can lose when a corporation fails istheir original investment
Which of the following is an incorrect statement? a. Preferredshares have features similar to both bonds and equity b. Preferredshares rank behind bonds in terms of claims on company assets incase of bankruptcy c. For all preference shares, a firm has acontractual obligation to pay fixed dividends every period d. Anissuing firm can redeem preferred shares from investors e.Preferred shares can pay cumulative or non-cumulative dividends
Which of the following is a correct statement? a. A placementraises extra capital but has the largest potential for ownershipdilution b. A rights issue raises capital from existing bondholdersand shareholders c. A dividend reinvestment plan is regarded as ashort-term strategy for raising capital quickly d. A rights issuemay be renounceable, whereby a shareholder can sell the right tothe issuing company e. Placement is attractive to companies as allshareholders partake in the placement
Which of the following is a correct statement? a. A closed-endfund is so-called because once investors have bought its shares,they have to wait until the fund matures to be able to sell theirshares and get their money back. b. A growth-managed fund generallyminimizes allocations to money market securities and bonds. c. Iflarge numbers of investors want their money back from an ETF, thefund must sell securities to meet redemptions. d. For unlistedfunds, it is often difficult and costly for investors to switchtheir investments with the fund manager. e. Ongoing management feesfor managed funds are usually in the order of 11% to 12.5%.
Which of the following about the industry life cycle is correct?a. One limitation of the life cycle approach is that it focuses onsales rather than share prices. b. At the consolidation stage, acompany’s products remain untested. c. At the expansion stage,investors can predict more easily the company’s market share. d.Typically, an investor at maturity stage of a company’s life cyclestands to earn the highest return. e. Most firms experience rapidgrowth for a long period compared to other stages.

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Which of the following is an incorrect statement Notes a LIBOR is a reference rate for a wide range of international transactions b Typically corporate bonds pay semiannual coupons over their lives c Commercial papers are shortterm unsecured debt securities d Investors like to invest in bonds as generally their coupons increase when interest rates increase Incorrect Statement Coupons do not change over time Bond price changes inversely as interest rates increase or decrease e Limited liability means the most that shareholders can lose when a corporation fails is their original investment Which of the following is an incorrect statement Notes a Preferred shares have features similar to both bonds and equity b Preferred shares rank behind bonds in terms of claims on company assets in case of bankruptcy c For all preference shares a firm has a contractual obligation to pay fixed dividends every See Answer

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Which of the following is an incorrect statement? a. LIBOR is areference rate for a wide range of international transactions b.Typically, corporate bonds pay semi-annual coupons over their livesc. Commercial papers are short-term unsecured debt securities d.Investors like to invest in bonds as generally their couponsincrease when interest rates increase e. Limited liability meansthe most that shareholders can lose when a corporation fails istheir original investmentWhich of the following is an incorrect statement? a. Preferredshares have features similar to both bonds and equity b. Preferredshares rank behind bonds in terms of claims on company assets incase of bankruptcy c. For all preference shares, a firm has acontractual obligation to pay fixed dividends every period d. Anissuing firm can redeem preferred shares from investors e.Preferred shares can pay cumulative or non-cumulative dividendsWhich of the following is a correct statement? a. A placementraises extra capital but has the largest potential for ownershipdilution b. A rights issue raises capital from existing bondholdersand shareholders c. A dividend reinvestment plan is regarded as ashort-term strategy for raising capital quickly d. A rights issuemay be renounceable, whereby a shareholder can sell the right tothe issuing company e. Placement is attractive to companies as allshareholders partake in the placementWhich of the following is a correct statement? a. A closed-endfund is so-called because once investors have bought its shares,they have to wait until the fund matures to be able to sell theirshares and get their money back. b. A growth-managed fund generallyminimizes allocations to money market securities and bonds. c. Iflarge numbers of investors want their money back from an ETF, thefund must sell securities to meet redemptions. d. For unlistedfunds, it is often difficult and costly for investors to switchtheir investments with the fund manager. e. Ongoing management feesfor managed funds are usually in the order of 11% to 12.5%.Which of the following about the industry life cycle is correct?a. One limitation of the life cycle approach is that it focuses onsales rather than share prices. b. At the consolidation stage, acompany’s products remain untested. c. At the expansion stage,investors can predict more easily the company’s market share. d.Typically, an investor at maturity stage of a company’s life cyclestands to earn the highest return. e. Most firms experience rapidgrowth for a long period compared to other stages.