Quiz Ch 15 – Second Stage Financing
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What characterizes second-stage financing?
What characterizes second-stage financing?
Before taking which of the following actions, a corporation must obtain the consent of its stockholders?
True or false: Private placement debt is favored by firms for its typically lower interest rates.
True or false: In the United States, the book building method used in most IPOs is akin to an auction, where potential buyers indicate their desired share quantities at various prices.
True or false: Bookbuilding prioritizes investors who assist in setting the issue price and may reward them with underpricing.
True or false: The costs associated with issuing debt are notably lower than those for equity securities.
True or false: One benefit of private placements is their cost-effectiveness.
True or false: Publicly-traded companies mainly employ crowdfunding as a way to raise extra capital.
True or false: Private placement contracts can be adapted to suit the distinct needs or unique opportunities of companies.
True or false: Venture capital, which constitutes equity capital for young businesses, is supplied by venture capital firms, affluent individuals, and investment institutions like pension funds.