Quiz Ch 14 – T/F Characteristics of Privately Placed Debt
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Private debt placements CANNOT be resold and must be held until maturity.
True or false: Private debt placements CANNOT be resold and must be held until maturity.
True or false: When internal funds are insufficient, companies increase their debt issuance.
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: 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: When an incompetent management team holds a substantial voting stake, they can utilize these votes to maintain control.
True or false: By retaining cash, firms internally generate funds, thus reducing their external funding requirements.
True or false: In the scenario where a company requires new capital without relinquishing control, it could classify existing shares as Class A and introduce Class B shares with restricted voting rights for external investors.
True or false: To preserve the market value of your preferred stock, consider acquiring floating-rate preferred shares.