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83. Which one of the following statements is correct about a floating interest rate loan if the
interest rate is defined as "Prime plus 1 percent"? The interest rate:
84. Corporations that annually retire a set portion of their long-term debt are said to be
using:
85. An independent outside director:
86. If a corporation has more shares issued than outstanding, then:
87. Which one of the following statements is true with respect to financial and product
markets?
88. A warrant has an exercise price of $40, and the current stock price is $38. An investor
holding this option will purchase the stock only if the:
89. Which one of these statements is correct regarding U.S. firms during the period 1995-
2012?
90. A firm's internally generated funds are calculated by:
91. If 100 million shares of common stock are issued with a par value of $2 and additional
paid in capital is $800 million, the total par value of the issued shares is:
92. A company is about to issue 1,000 new shares of stock at a market price of $33 per
share. If the par value per share is $4, the increase in capital surplus from this stock issue will
be:
93. One way that investors contribute capital to the firm is by:
94. When a firm issues 50,000 shares with a par value of $5 and a market price of $22 per
share, additional paid in capital will:
95. If the Beta Co. issues $100 million worth of preferred stock, what will happen to its net
worth if book value of common equity is $500 million?
96. Preferred stockholders generally:
97. All of the following are types of innovative bonds
except
:
98. The majority of an established firm's capital is generated:
99. Earnings this year for Plasti-tech Inc. were $200,000. It decided to plow back $60,000 and
recorded $20,000 of depreciation. Plasti-tech's internally generated funds are:
100. With respect to bonds, when interest rates increase typically:
101. How does competition in financial markets compare to the competition that can be found
in product markets?
102. To state that financing at current market terms is a zero-NPV transaction indicates that:
103. An efficient capital market is one in which:
104. Which one of the following is
least
likely to contribute to the positive-NPV investments
found in product markets?
