Quiz Ch 14 – T/F Defining Par Value in Share Issuance
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: The par value of a stock is the price at which new shares are issued.
True or false: The par value of a stock is the price at which new shares are issued.
True or false: A eurobond is essentially a bond that is specified in euros.
True or false: The par value of stock sets the stock market.
True or false: It’s common for different classes of stock to have varying voting rights.
True or false: Both Ford Motor Company and Google have employed dual-class shares, each with varying voting rights, to facilitate capital infusion while safeguarding managerial control.
True or false: Funded debt is NOT subject to default by corporations.
True or false: In the case of most firms, the major portion of their funding originates from external sources.
True or false: In the United States, historically, internally generated cash has typically covered less than 50% of the capital needs of non-financial firms.
True or false: Callable bonds’ call provision curtails the capital gain potential of bondholders which comes at their expense.
True or false: Bonds that include a callable feature generally trade at reduced prices when compared to bonds lacking this feature.