Which of the following statements about discounts on a rights issue are true? (1) The level of...
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.
Homework Answers
Answer- The Correct Answer is (2) The bigger the discount the more likely a shareholder is to accept the rights offer in most cases.
As if the Rights issue is given at Heavy Discounts to the Existing Shareholders in comparison to the market value the Shareholders are Likely to Exercise it.
The First Point is Incorrect because even if Shareholders do not Exercise the Right they can sell the Offer in the Open Market which will increase the Wealth of Shareholders.
Add Answer to:
Which of the following statements about discounts on a
rights issue are true?
(1) The level of...
Which of the following statements holds true for the term, community wage level? a. It refers...
Which of the following statements holds true for the term, community wage level? a. It refers to a structure for determining salary increases that encourages work that is less effective, less efficient, or both. b. It refers to the standard range of wages paid at a location, usually across a city or a region. c. It refers to the salary range a company sets for its employees, independent of the community wage level and wages as set by other, competing...
a) Briefly explain what is meant by “Right Issue” and explain its role in the...
a) Briefly explain what is meant by “Right Issue” and explain its role in the Protection of Shareholders’ interests. b) Briefly explain in Principle a Right Issue has NO impact on the Wealth of Shareholder, whether the Shareholder decides to invest in the issue or sell the Rights to acquire additional shares. c) Carpets Direct plc wishes to increase the number of its Retail Outlets in the North America. The BOD has decided to finance the expansion programe by...
Which of the following is true about mental accounting? Multiple Choice In mental accounting, people frame assets as be...
Which of the following is true about mental accounting? Multiple Choice In mental accounting, people frame assets as belonging to current wealth, current income, or future income. Mental accounting theory suggests that credit cards decouple the purchase from the payment by separating and delaying the payment. One consequence of mental accounting is that small windfalls (e.g. a $50 lottery win) are generally treated as 'current income' that is likely to be spent, whereas large windfalls (e.g. a $5,000 bonus at...
Which of the following statements is TRUE about ecological model interventions? Most evidence of effectiveness has...
Which of the following statements is TRUE about ecological model interventions? Most evidence of effectiveness has come from cross-sectional studies It is difficult to integrate individual level theories into ecological model interventions Although widely used, there is little evidence of their effectiveness in improving health outcomes Individual level changes are likely more effective in promoting sustained behavior change than environmental and policy levels changes
Which of the following statements about the theory of constraints is (are) true? 16 (A) The...
Which of the following statements about the theory of constraints is (are) true? 16 (A) The theory of constraints focuses on determining the optimal product mix when two or more resources restrict the attainment of a goal or objective (B) The theory of constraints focuses on maximizing the rate of throughput contribution while maximizing investment and other operating costs. 8 000956 Multiple Choice Only A Neither of these is true Only B O Both of these are true
Which of the following statements regarding the amortization of discounts and premiums on bonds is true?...
Which of the following statements regarding the amortization of discounts and premiums on bonds is true? The effective interest method applies a non-constant percentage to the bond carrying value to compute interest expense. The amount of interest expense decreases each period over the life of a discounted bond issue when the effective interest method is used. When the straight-line and effective interest methods of amortization result in interest that is materially different, GAAP requires use of the effective interest method....
Which of the following statements is true? Taxes on dividend income are paid when the stock...
Which of the following statements is true? Taxes on dividend income are paid when the stock is sold. Taxes on dividend income are paid in the year that they are received As a result, the U.S. tax code encourages many individual investors to prefer to receive Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. The theory of explains this phenomenon In some cases, analysts notice that...
Which of the following statements is generally true about diversity in the workplace? Multiple Choice A....
Which of the following statements is generally true about diversity in the workplace? Multiple Choice A. All of these statements are true. B. Individuals are more likely to quit their jobs when they are part of diverse groups. C. Diversity can lead to negative outcomes such as discrimination. D. A lack of diversity can increase conformity and “groupthink.”
Which of the following statements is true about trends in marriage and divorce in the United...
Which of the following statements is true about trends in marriage and divorce in the United States? One third of young adults indicated that economic reasons were a key obstacle to getting married. The most common reason people 35 and older give for not being married is that they are not ready to settle down. Rates of marriage in the U.S. have declined. The U.S. divorce rate is declining. The U.S. divorce rate is increasing, wealth includes total wealth excluding...
Which of the following statements about a 2-for-1 stock split is not true? A shareholder with...
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 is true about mental accounting? Multiple Choice In mental accounting, people frame assets as belonging to current wealth, current income, or future income. Mental accounting theory suggests that credit cards decouple the purchase from the payment by separating and delaying the payment. One consequence of mental accounting is that small windfalls (e.g. a $50 lottery win) are generally treated as 'current income' that is likely to be spent, whereas large windfalls (e.g. a $5,000 bonus at...
Which of the following statements about the theory of constraints is (are) true? 16 (A) The theory of constraints focuses on determining the optimal product mix when two or more resources restrict the attainment of a goal or objective (B) The theory of constraints focuses on maximizing the rate of throughput contribution while maximizing investment and other operating costs. 8 000956 Multiple Choice Only A Neither of these is true Only B O Both of these are true
Which of the following statements regarding the amortization of discounts and premiums on bonds is true? The effective interest method applies a non-constant percentage to the bond carrying value to compute interest expense. The amount of interest expense decreases each period over the life of a discounted bond issue when the effective interest method is used. When the straight-line and effective interest methods of amortization result in interest that is materially different, GAAP requires use of the effective interest method....
Which of the following statements is true? Taxes on dividend income are paid when the stock is sold. Taxes on dividend income are paid in the year that they are received As a result, the U.S. tax code encourages many individual investors to prefer to receive Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. The theory of explains this phenomenon In some cases, analysts notice that...
Which of the following statements is true about trends in marriage and divorce in the United States? One third of young adults indicated that economic reasons were a key obstacle to getting married. The most common reason people 35 and older give for not being married is that they are not ready to settle down. Rates of marriage in the U.S. have declined. The U.S. divorce rate is declining. The U.S. divorce rate is increasing, wealth includes total wealth excluding...
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.
Most questions answered within 3 hours.
-
According to a recent national Gallup Poll of U.S. smartphone
user, 35% upgrade their cell phone...
asked 2 minutes ago -
Suppose researchers perform a large-sample test of a population
proportion where the null hypothesis is that...
asked 1 minute ago -
Jessica is single and has taxable income of $305,000 of which
$130,000 is attributable to her...
asked 6 minutes ago -
Can someone help me fill in the first part of this c++ code:
I need it...
asked 8 minutes ago -
A reaction vessel at 27 ∘C contains a mixture of SO2(P=3.10 atm
) and O2(P=1.00 atm...
asked 28 minutes ago -
A scientist randomly mutates the DNA of a bacterium. She then
sequences the bacterium’s daughter cells,...
asked 39 minutes ago -
2. Content theories attempt to explain work behaviors based on
__________.
a. the relationship between values...
asked 31 minutes ago -
Discuss the impact of technology on Medieval society and culture
and the impact of society and...
asked 28 minutes ago -
Assignment 3: Introduction & Environmental Analysis,
SWOT, Marketing Objectives (Goals) Marketing 4100
Directions
Total Point Value:...
asked 20 minutes ago -
Forecasts and actual sales of MP3 players at Just Say
Music are as follows:
Month
Forecast...
asked 21 minutes ago -
function predictKNN which computes the KNN prediction for given
input xi, K and train data.
A...
asked 33 minutes ago -
A 3.15-g bullet embeds itself in a 1.17-kg block, which is
attached to a spring of...
asked 47 minutes ago