100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
MHA 706 MOD 5 - EQUITY FINANCING AND SECURITIES MARKET EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++ $10.49   Add to cart

Exam (elaborations)

MHA 706 MOD 5 - EQUITY FINANCING AND SECURITIES MARKET EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++

 1 view  0 purchase
  • Course
  • Institution

MHA 706 MOD 5 - EQUITY FINANCING AND SECURITIES MARKET EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++ How is Equity supplied in a For-Profit Organization? By Owners / Shareholders How is Equity supplied in a not-for profit organization? By the community What are the rights and p...

[Show more]

Preview 2 out of 5  pages

  • November 10, 2024
  • 5
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
avatar-seller
MHA 706 MOD 5 - EQUITY FINANCING AND SECURITIES MARKET

EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS

GRADED A++

How is Equity supplied in a For-Profit Organization?

By Owners / Shareholders

How is Equity supplied in a not-for profit organization?

By the community

What are the rights and privileges of Stockholders?

- Claim on residual earnings (net income)

- Control of the firm

- Preemptive right

In for profit, what can net income of a business be used for?

- Paid out as dividends

- Stock repurchase

- Company reinvestment

What is Preemptive right?

Right for current stockholders to purchase new shares of the same company



Allows for current stockholders to protect their interest in an organization.

Is there a correlation between Per Share Earnings and Average Annual Stock

Price?

No - external factors can affect stock price independently of earnings

, Can dividends exceed earnings?

Yes - Cash flow is more important than earnings in setting dividend payments

What are methods used by corporations to sell ne shares of common stock?

- Rights offering

- Public offering

- Private placement

- Employee stock purchase plan

- Dividend reinvestment plan (DRIP)

- Direct purchase plan

What is Private placement in regards to corporations selling new stocks?

Stocks usually sold to a group of individuals or financial/investment institutions

What is purchase plan in regards to corporations selling new stocks?

Small capital individuals or corporations buying fractions of a stock.

Where could not-for-profits obtain start-up equity from?

- Religious organizations

- Governmental entities

- Contributions

Where could not-for-profits obtain ongoing equity from?

- Profits

- Contributions

- Grants

How are start-up business stock valued ?

Roughly though option pricing models

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller AcademicSuperScores. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79373 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$10.49
  • (0)
  Add to cart