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MHA 706 MOD 5 - EQUITY FINANCING AND SECURITIES MARKET EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++ $10.49   Add to cart

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

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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...

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  • November 10, 2024
  • 5
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
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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

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