|A proxy statement is a statement transferring ________.
||a. the votes of a stockholder to another party
|Which of the following is true of common stocks?
||. The common stock of a corporation can be either privately or publicly owned.
|________ are promised a fixed periodic dividend that must be paid prior to paying any common stock dividends.
||a. Preferred stockholders
|Which of the following is an advantage for a firm to issue common stock over long-term debt?
||c. no maturity date on which the par value of the issue must be repaid
|From a corporation’s point of view, a disadvantage of issuing preferred stock is ________.
||a. that the dividends are not tax-deductible
|Holders of equity capital ________.
||a. own the firm
|A(n)________ is hired by a firm to find prospective buyers for its new stock or bond issue.
||c. investment banker
|Which of the following is true of preferred stocks?
||d. Preferred stock with a conversion feature allows holders to change each share into a stated number of shares of common stock.
|Which of the following is typically a feature of common stock?
||c. Common stocks may or may not pay dividends.
|________ is a guide to a firm’s value if it is assumed that investors value the earnings of a given firm in the same way they do the average firm in the industry.
||c. The P/E multiple