which of the following statements about controlling shareholder groups reflect proper reasoning?
firms with controlling shareholder groups have a greater stake in controlling and monitoring managers and reducing inefficiency; hence their cost of equity could be smaller.
solution 2) firms with controlling shareholders groups could have a higher cost of equity because minority shareholders may worry about being dispossessed and require a higher return.
which of the following statements about controlling shareholder groups reflect proper reasoning?
Which of the following statements about a 2-for-1 stock split is not true? A shareholder with 200 shares before the split owns 400 shares after the split. Legal capital per share is reduced to half of what it was before the split. Total share capital increases. The market value of the shares will probably decrease.
Which of the following statements about carbonyl groups is true? The bond angles about the carbon of a carbonyl group are 109.5° The carbon atom of a carbonyl group is nucleophilic. The oxygen atom of a carbonyl group is electron-poor The carbonyl group's double bond consists one s and one p bond. The carbon atom of a carbonyl group is sp-hybridized.
Which of the following statements correctly describes an advantage of having the principal shareholder of a business receive a salary rather than dividend income? a) Only by taking a salary can the principal shareholder minimize the overall tax cost of extracting money from the corporation. b) Taking a salary allows the principal shareholder to contribute to a Registered Retirement Savings Plan (RRSP). c) Taking a salary reduces the shareholder’s cumulative net investment loss (CNIL) balance, which will help ensure that...
Which of the following statements about discounts on a rights issue are true? (1) The level of discount is simply not relevant to the wealth of a shareholder as long as they accept the right. It is ignorance of the theory that encourages the offer of a discount in most cases. (2) The bigger the discount the more likely a shareholder is to accept the rights offer in most cases.
Which of the following statements is true about an electing small business trust? A. Beneficiaries can be estates. B. Beneficiaries must be individuals. C. Beneficiaries cannot be charitable organizations. D. It is not permitted as an S corporation shareholder
which of the following statements about weight loss surgery is accurate? a. it is not effective in controlling diabetes b. it is recommended for those who are unable to make dietary and exercise behavior changes c. it is not recommended for anyone with a BMI less than 30 d. it is popular because there are no real side effects
Determine if the following statements are true or false, and explain your reasoning for statements you identify as false. (a) When comparing means of two samples where n1 = 20 and n2 = 40, we can use the normal model for the difference in means since n2 ? 30. (b) As the degrees of freedom increases, the T distribution approaches normality. (c) We use a pooled standard error for calculating the standard error of the difference between means when sample...
Which of the following is a term for the maximization of shareholder value? a. Shareholder primacy b. Corporate allocation c. Shareholder importance d. Value of shares maximization
Which of the following statements is true about the ANOVA? Group of answer choices An ANOVA indicates if any significant difference exists and specifies which two groups were statistically significant. An ANOVA indicates no significant difference between two groups that are statistically significant. An ANOVA indicates no significant difference between three groups that are not statistically significant. An ANOVA indicates if any significant difference exists but does not specify which two groups were statistically significant.
Which of the following statements is NOT accurate statement about how insurance premiums (rates) are determined in the US? A. rates reflect risk and the investment income that insurers expect b. rules for how rates are determined are made at the state level c. state regulators want to be sure premiums are not unfairly discriminated d. rates reflect distribution and overhead costs e. the federal gov wants to be sure rare are adequate