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1) Smaller investment banking houses may handle distributions for relatively unknown
corporations on a "best-efforts" basis.
2) Generally, dividends should be changed when a corporation reaches a new level of
permanent income.
3) In the capital asset pricing model (CAPM), beta measures the volatility of the
market.
4) Discounted at 6%, $1,000 received three years from now is worth less than $800
received today.
5) Investors discount the later years of a long-term project at a lower rate because they
are generally less precise.
6) If you expect interest rates to go up, you should buy a long-term bond now.
7) Under majority voting, it is easier for minority stockholders to elect some directors to
the board.
8) A "takeover tender offer" describes the attempted purchase of a firm with the consent
of that firm's management.
9) Shelf registration requires the firm to file one comprehensive registration statement,
which outlines the company's immediate long-term financing plans.
10) Linear break-even analysis and operating leverage are only valid within a relevant
range of production.
11) The SEC's Rule 415 allows issuing corporations to quickly take advantage of
market conditions.
