Preemptive right protect interests of existing stockholders
Explain: a pre-emptive right protect the interests of existing stockholders.
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Pre-emptive right protects the existing stockholders interests by providing them the opportunity to pre-empt other investors while buying of new shares. If pre-emptive rights are exercised then the existing shareholders will maintain the similar percentage of ownership even after the new stock is issued as before.
Explain the term: compensating balances and why do banks require compensating balances from some customers? When can a bank impose compensating balances?
$100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________.
How does the theory of comparative advantage associate to the currency swap market?Name recognition is very important in the international bond market. Without it, even a creditworthy corporation will determine itself paying higher interest rat
Explain Adaptive Market Hypothesis of Andrew Lo.
What is forward equation?
Explain in brief capital rationing? What are reasons that a firm should practice capital rationing?
Why is volatility annualized standard deviation of return?
What is Treynor Ratio?
Illustrates an example relates with risk that defined in mathematical terms.
How and why does working capital affect the incremental cash flow estimation for a proposed large capital budgeting project?
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