When compared to other methods of selling new securities

Assignment Help Financial Management
Reference no: EM13953884

Which of the following is a disadvantage of a private placement when compared to other methods of selling new securities?

High interest cost

reduced flotation costs

avoidance of registration with the SEC

strictly standardized features /terms

Reference no: EM13953884

Questions Cloud

Declaring bankruptcy to resolve financial distress : What are the advantages and disadvantages of a voluntary workout to resolve financial distress? What are the advantages and disadvantages of declaring bankruptcy to resolve financial distress?
What are the wealth effects of corporate control activities : Empirically, what are the wealth effects of corporate control activities? Who wins and who loses in corporate control contests? What explanations or theories are offered for the differences in returns of acquiring firms’ common stocks? Why are higher..
The corporate treasury is typically responsible : The Corporate Treasury is typically responsible for each of the following duties except
As of today the most severe economic crisis to afflict : As of today the most severe economic crisis to afflict the United States economy is considered to be
When compared to other methods of selling new securities : Which of the following is a disadvantage of a private placement when compared to other methods of selling new securities?
An income statement may be represented as follows : An income statement may be represented as follows
An analyst is evaluating two companies : An analyst is evaluating two companies, A and B. company A has a debt ratio of 50% & Company B has a debt ratio of 25% in this report the analyst is concerned about company B debt level but not about company A debt level. which of the following will ..
Attempt to measure the net results of firms operations : Which of the following represents an attempt to measure the net results of the firm's operations (revenue versus expensive) over a given time period?
Total investors capital x after-tax cost of capital : For the company you selected, describe your company’s operations and the market in which it operates. Search for the EVA, and free cash flow using the firm’s annual report. Define their respective meanings and how your firm is performing in these are..

Reviews

Write a Review

Financial Management Questions & Answers

  What about the worst-case scenario

Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $2,900 per unit; variable costs = $580 per unit; fixed costs = $5.2 million; quantity = 88,000 units. Suppose the company believes all of its estimates ..

  What will the ex-dividend price of the stock

Amos owns 1,200 shares of Fasteners, Inc. stock. The stock closed today at $41.20 a share. Tomorrow, the firm will pay its annual dividend of $.70 a share. The tax rate on dividends is currently 15% with the tax being withheld at the time of payment...

  Immediately after coupon payment-calculate the market price

A $10,000 par value bond with coupons at 8%, convertible semi-annually, is being sold three years and four months before the bond matures. The bond is redeemable at $C, and purchase will yield 6% convertible semi-annually to the buyer.

  What is average amount of receivables-days sales outstanding

Snider Industries sells on terms of 3/10, net 30. Total sales for the year are $1,619,000. Thirty percent of the customers pay on the 10th day and take discounts; the other 70% pay, on average, 70 days after their purchases. What is the days sales ou..

  Place in the savings account

Camillia plans to go on vacation to Australia 11 years from now. She estimates that she will need $24,186 for the trip. How much does she need to place in the savings account today, assuming that she earns 7.59 percent per year, compounded QUARTERLY,..

  What are the arithmetic and geometric returns for stock

A stock has had returns of −19.6 percent, 29.6 percent, 31.2 percent, −10.7 percent, 35.4 percent, and 27.6 percent over the last six years. What are the arithmetic and geometric returns for the stock?

  Current book value of property

Your company purchased a piece of land six years ago for $175,000 and subsequently added $175,000 in improvements. The current book value of the property is $325,000. There are two options for future use of the land: 1) the land can be sold today for..

  What is the APR and EAR of your investment

You bought a stock four months ago for $74.32 per share. The stock paid no dividends. The current share price is $76.84. What is the APR and EAR of your investment? (Do not round intermediate calculations. Enter your answers as a percentage rounded t..

  Annual sales figure when evaluating this project-net sales

Winnebagel Corp. currently sells 29,000 motor homes per year at $78,000 each and 8,000 luxury motor coaches per year at $120,000 each. The company wants to introduce a new portable camper to fill out its product line; What is the amount to use as the..

  Equity firm generates cash flows

An all equity firm generates cash flows (CFFA) of $100 million every year in perpetuity. Based on the risk of the cash flows, a discount rate of 20% is appropriate for the firm. The firm is considering a project that will require an investment of $75..

  The default risk premium on the corporate bond

A Treasury bond that matures in 10 years has a yield of 6.5%. A 10-year corporate bond has a yield of 10.5%. Assume that the liquidity premium on the corporate bond is 2%. What is the default risk premium on the corporate bond?

  Fully depreciated and has no salvage value

St. Johns River Shipyard's welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be used for quite a while longer. The new welder will cost ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd