Essay About Stock Price And Following Motivates Corporations

Optional Questions and Answers
Which of the following is the LEAST issued security by U.S. corporations?a.Bondsb.Preferred stocka. Common stockd.Both a and bThe SEC would not require registration of a public issue if the:a. firm sells less than $1.5 million of new securities per year.b. issue is sold entirely intrastate.c. issue are long-term instruments only.b. both a and b.c. all of the above.Which of the following is the most important factor that affects a firms financing mix?a.The amount of EPSb.The amount of operating incomec.The number of shares that are outstandingd.Business riskFrom the information below, select the optimal capital structure for Mountain High Corp.a.Debt = 40%; Equity = 60%; EPS = $2.95; Stock price = $26.50b.Debt = 50%; Equity = 50%; EPS = $3.05; Stock price = $28.90c.Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.20d.Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40e.Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00Which of the following motivates corporations to enter into stock repurchase programs?a.Favorable impact on EPSb.Expected favorable impact on stock pricec.To modify the firms capital structured.All of the abovee.None of the aboveWhich of the following is the LEAST issued security by U.S. corporations?a.Bondsb.Preferred stocka. Common stockd.Both a and bThe SEC would not require registration of a public issue if the:a. firm sells less than $1.5 million of new securities per year.b. issue is sold entirely intrastate.c. issue are long-term instruments only.b. both a and b.c. all of the above.Which of the following is the most important factor that affects a firms financing mix?a.The amount of EPSb.The amount of operating incomec.The number of shares that are outstandingd.Business riskFrom the information below, select the optimal capital structure for Mountain High Corp.a.Debt = 40%; Equity = 60%; EPS = $2.95; Stock price = $26.50b.Debt = 50%; Equity = 50%; EPS = $3.05; Stock price = $28.90c.Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.20d.Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40e.Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00Which of the following motivates corporations to enter into stock repurchase programs?a.Favorable impact on EPSb.Expected favorable impact on stock pricec.To modify the firms capital structured.All of the abovee.None of the above