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Corporate Financial Management

Business

Quiz 10 :

Raising Equity Capital

Quiz 10 :

Raising Equity Capital

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Which three of the following are arguments for joining a stock exchange?
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Multiple Choice
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Answer:

A, C, D

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Which three of the following are advantages to the firm of preference share capital?
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A, B, C

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Which two of the following statements are correct?
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A, B

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Companies need expert guidance through the issuing process. What organisations provide this?
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Which three statements link to explain the meaning of the term 'financing gap'?
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How is the value of a right on a new share calculated during a rights issue?
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What type of investment offers a fixed rate of return, and is part of the shareholders' funds but not part of the equity capital?
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Which three of the following are requirements for a company that wants to float on the Official List?
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The tasks below must be carried out in relation to a new equity issue. Which of them is performed by sub- underwriters?
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An investor wants a tax- efficient vehicle for investing in small unquoted firms . The investor also wants to reduce risk by pooling the investment with others. Which approach is most suitable?
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Which three of the following are tasks that a firm must carry out after the issuing process (or explain the annual reports)?
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To decide a price for a future issue, and the allocation of shares, financial advisers may contact major investors and ask them to place bids over a period of a few days. What term is used for this approach?
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Who owns a plc?
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Which of the following is the most suitable source of finance for high- growth- potential unquoted firms, who require amounts of around £5m?
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If a large company like BT wanted to raise further finance by selling shares to investors, where would they be most likely to offer the shares?
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What is meant by the term 'rights issue'?
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From a shareholder's viewpoint, what is the key benefit of limited liability?
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An investor does not have the cash to buy shares in a 5 for 1 rights issue. The theoretical value of the share ex- rights is £3.20, and the subscription price is £3. What is the value of a right on one share?
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Which three of the following are key roles of the broker during the issuing process?
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Which two statements accurately describe the taxation of dividends and loans?
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