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31.Shelf registration more often used for the: A. issue of common stock. B. issue

Question : 31.Shelf registration more often used for the: A. issue of common stock. B. issue : 1409491

 

31.Shelf registration is more often used for the: 
 
 

A. issue of common stock.

B. issue of convertible securities.

C. issue of corporate bonds.

D. issue of warrants.

32.The following are advantages of shelf registration except:

I) securities can be issued in dribs and drabs without incurring excessive transaction costs;
II) securities can be issued on short notice;
III) security issues can be timed to take advantage of market conditions 
 
 

A. I only

B. II only

C. III only

D. I, II, and III

33.The underwriter's spread is the highest for: 
 
 

A. IPOs.

B. seasoned equity offerings.

C. convertible bonds.

D. straight bonds.

34.The very first public equity sold by a company is referred to as: 
 
 

A. a rights issue.

B. American depositing receipts (ADRs).

C. an initial public offering (IPO).

D. a seasoned equity offering (SEO).

35.A new public equity issue from a company with public equity previously outstanding is called a(an): 
 
 

A. initial public offering (IPO).

B. American depository receipt (ADR).

C. seasoned equity offering (SEO).

D. private placement.

36.Generally, which of the following issues have the lowest total direct costs of issuing as a percentage of gross proceeds? 
 
 

A. initial public offerings (IPOs)

B. seasoned equity offerings (SEOs)

C. convertible bonds

D. straight bonds

37.Most financial economists attribute the drop in the price of equity subsequent to the announcement of a new issue to: 
 
 

A. an increase in the supply of shares.

B. information effect.

C. both a and b.

D. neither a nor b.

38.A rights issue is also called a(an): 
 
 

A. private placement.

B. shelf registration.

C. initial public offering (IPO).

D. privileged subscription.

39.Image Storage Corporation has 1,000,000 shares outstanding. It wishes to issue 500,000 new shares using a (North American) rights issue. If the current stock price is $50 and the subscription price is $47/share, what is the value of a right? 
 
 

A. $0.40/right

B. $5.00/right

C. $2.50/right

D. $1.00/right

40.New Image Corporation has 1,000,000 shares outstanding. It wishes to issue 500,000 new shares using rights issue. How many (North American) rights are needed to buy one new share? 
 
 

A. 1 right/share

B. 2 rights/share

C. 3 rights/share

D. 4 rights/share

 

 

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