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In finance what is a proxy fight ??

A proxy fight is:

a)Used by non-owners in an effort to buy the company.

b)Used by current owners to affect management control

c)Used my managers to evict certain or all board members

d)Used only after union talks have failed.

e)none of the above

In the calculation of rates of return on common stock, dividends are _______ and capital gains are ______.

a)guaranteed; not guaranteed

b)guaranteed; guaranteed

c)not guaranteed; not guaranteed

d)not guaranteed; guaranteed

Which of the following represent the principal agent issues in the control of the firm: (Points: 3)

a)Common shareholders are represented by the Board of Directors.

b)The Board of directors hires executives and managers to run the company.

c)Independent auditors are hired to report how managers are utilizing the owner's assets.

d)The Board determines not to pay dividends as managers say they need the money to grow the company and buy a new corporate jet.

e)all of the above.

Which of the following is false: (Points: 3)

a)Common shareholders are the owners of the firm.

b)In large corporations, managers usually control operations.

c)In large corporations, managers nominate potential board members

d)In large corporations, shareholders do not have the right to nominate members of the board which can be voted upon by all shareholders.

e)There is one false statement in "a thru d" above.

A proxy fight is:

a)Used by non-owners in an effort to buy the company.

b)Used by current owners to affect management control

c)Used my managers to evict certain or all board members

d)Used only after union talks have failed.

e)None of the above are correct

Which of the following is false:

a)Common shareholders are the owners of the firm.

b)In large corporations, managers usually control operations.

c)In large corporations, managers nominate potential board members

d)In large corporations, shareholders do not have the right to nominate members of the board which can be voted upon by all shareholders.

e)There is one false statement in "a thru d" above.

In the calculation of rates of return on common stock, dividends are _______ and capital gains are ______.

a)guaranteed; not guaranteed

b)guaranteed; guaranteed

c)not guaranteed; not guaranteed

d)not guaranteed; guaranteed

Which of the following would be most likely to increase the coupon rate that is required to enable a bond to be issued at par?

a) Adding a call provision.

b) Adding additional restrictive covenants that limit management's actions.

c) Adding a sinking fund.

d) The rating agencies change the bond's rating from Baa to Aaa.

e) Making the bond a first mortgage bond rather than a debenture.

Which of the following would be most likely to increase the coupon rate that is required to enable a bond to be issued at par?

a) Adding a call provision.

b) Adding additional restrictive covenants that limit management's actions.

c) Adding a sinking fund.

d) The rating agencies change the bond's rating from Baa to Aaa.

e) Making the bond a first mortgage bond rather than a debenture.

Which of the following statements is CORRECT? (Points: 4)

a) Junior debt is debt that has been more recently issued, and in bankruptcy it is paid off after senior debt because the senior debt was issued first.

b)Convertible bonds have lower coupon rates than non-convertible bonds of similar default risk because they offer the possibility of capital gains.

Which of the following would be most likely to increase the coupon rate that is required to enable a bond to be issued at par?

A) Adding a call provision.

B) Adding additional restrictive covenants that limit management's actions.

C) Adding a sinking fund.

D) The rating agencies change the bond's rating from Baa to Aaa.

E) Making the bond a first mortgage bond rather than a debenture

Double Taxation refers to:

A) All partners paying equal taxes on profits

b) Corporations paying taxes on both dividends and retained earnings.

c) Paying taxes on profits at the corporate level and dividends at the personal level

d) The fact that marginal tax rates are doubled for corporations.

Consider a banker who makes a loan of $100 for one year and is to receive $108 at the end of the year. Which of the following is true? (Points: 2)

a) Since bankers only make a profit from interest income, his main focus is to receive a "return on his investment".

b) the $8 paid at the maturity is considered your "return of your original investment".

c)the banker's main focus is to receive a return OF his investment; even though he may have earned nothing, he will be able to "live another day".

d) he doesn't care as he is taking the same risk as you.

Consider a banker who makes a loan of $100 for one year and is to receive $108 at the end of the year. Which of the following is true? (Points: 2)

a) Since bankers only make a profit from interest income, his main focus is to receive a "return on his investment".

b) the $8 paid at the maturity is considered your "return of your original investment".

c)the banker's main focus is to receive a return OF his investment; even though he may have earned nothing, he will be able to "live another day".

d) he doesn't care as he is taking the same risk as you.

Some one help me answering this question....?

You invest $100 into a CD (certificate of deposit) for one year and receive $108 at the end of the year. Which of the following is false?

a) the $100 of the CD at maturity is considered a "return of your original investment".

b) the $8 paid at the maturity is considered your "return on your original investment".

c) you must pay tax on the return "ON" investment only.

d)You are taxed on the entire cash flow when paid upon the CD's maturity.

You invest $100 into a CD (certificate of deposit) for one year and receive $108 at the end of the year. Which of the following is false?

a) the $100 of the CD at maturity is considered a "return of your original investment".

b) the $8 paid at the maturity is considered your "return on your original investment".

c) you must pay tax on the return "ON" investment only.

d)You are taxed on the entire cash flow when paid upon the CD's maturity.

Consider a banker who makes a loan of $100 for one year and is to receive $108 at the end of the year. Which of the following is true? (Points: 2)

a) Since bankers only make a profit from interest income, his main focus is to receive a "return on his investment".

b) the $8 paid at the maturity is considered your "return of your original investment".

c) the banker's main focus is to receive a return OF his investment; even though he may have earned nothing, he will be able to "live another day".

d) he doesn't care as he is taking the same risk as you.

Profitability ratios are distorted by inflation because profits are stated in current dollars and assets and equity are stated in historical dollars.

a) True b) false

The person with neat explanation will get 10 points. i tried to add but i did understand where to add. So please help me. Waiting for your replies.