In a leveraged buy out, a firm greatly increases its debt level by issuing junk bonds to finance the purchase of another firm’s stock.
举一反三
- Which of the following statements is most accurate regarding a firm’s cost of preferred shares A firm’s cost of preferred stock is:（） A: the market price of the preferred shares as a percentage of its issuance price. B: the dividend yield on the firm’s newly-issued preferred stock. C: approximately equal to the market price of the firm’s debt as a percentage of the market price of its common shares.
- 中国大学MOOC: A firm has a high level of stock turnover and uses the FIFO (first in first out)issue pricing system. In a period of rising purchase prices, the closing stock valuation is :
- If a firm has a debt to owners' equity ratio of .75 (or 75%) we can conclude that A: it has relied more on debt than equity to finance its operations. B: the firm is likely to have trouble paying its short-term debts when they come due. C: its total liabilities are less than its owners' equity. D: the firm has expenses that are exactly 75% of its gross profit.
- Ifthewageexceedsthevalueofthemarginalproductoflabor,thenhiringanotherworker? increases;the;firm's;profit.|decreases;the;firm's;total;cost.|decreases;the;firm's;total;revenue.|decreases;the;firm’s;profit.
- In<br/>which of the following case will a firm prefer the entry mode of a<br/>wholly owned foreign subsidiary? ( ) A: The<br/>firm has a high level of tacit knowledge B: The<br/>firm has a high level of performance certainty C: The<br/>firm has a low level of interdependence with its foreign partner D: The<br/>firm has a low level of confidence in international operation