Distinguish between a foreign bond, Eurobond, and multi-currency bond. What are the advantages and disadvantages of each to both lender and borrower. These three types…

A floating rate note (FRN) is an intermediate- or long-term bond with a floating interest rate. FRNs are issued in the Eurocurrency markets (where they…

a. An accounting measure? Owners’ equity represents the amount of a company’s assets not offset by liabilities, hence owned by the firm’s investors. Mathematically, owners’…

a. Authorized shares – the total number of shares a company can issue as approved by the government. b. Issued shares – the total number…

a. Par value – the maximum capital contribution required from investors for each share. b. Book value – the accounting value for each share; total…

Everyone will rank the six benefits in their own order of preference, although most people will put income near the top of the list. In…

What is the difference between primary and fully diluted earnings per share? Primary earnings per share (EPS) is calculated by dividing a corporation’s reported net…

In what way does a proxy give significant power to a corporation’s management? A proxy is a combination absentee ballot and assignment of vote. Proxies…

Is there any advantage to having preemptive rights as a stockholder? Is there any disadvantage? There are two advantages to a corporation’s stockholders of having…

If a stockholder could literally inspect the company’s books, a company’s competitors could buy a few shares and use their new relationship as a stockholder…