1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
worty [1.4K]
3 years ago
6

A rights offering Question 16 options: a) is the least expensive way to raise capital. b) gives the firm a built-in market for n

ew securities. c) will increase the shareholder's total valuation. d) will likely lead to considerably higher distribution costs.
Business
1 answer:
zysi [14]3 years ago
7 0

Answer: b. gives the firm a built-in market for new securities.

Explanation:

Rights offering are issued by companies when such companies wants to generate additional capital. This may be necessary when such company wants to meet its financial obligations and therefore need extra capital.

A rights offering gives the firm a built-in market for new securities as the security holder are already aware of the company and just buys additional securities.

You might be interested in
Recalling the competency pyramid studied in this chapter, what is the difference between a personal competency and an academic c
EastWind [94]

Answer:

c

Explanation:

lololololoolololololol

6 0
3 years ago
The fifth step of the financial planning process is to create and implement the financial action plan. What is involved in this
alexgriva [62]

Answer:

Developing an action plan that identifies ways to achieve your financial goals.

7 0
2 years ago
What is a business opportunity?
MatroZZZ [7]

Answer:

A business opportunity (or bizopp) involves sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business.

7 0
3 years ago
Read 2 more answers
If a target was purchased for $1,500.0m with an equity contribution of $500.0m, what is the enterprise value of the target if it
posledela

Answer: a. $1,000.0m

Explanation:

Even though the company's enterprise value has no growth, the equity investment of the sponsor will rise from $500.0m when purchased to $1,000.0m when the target for the value of the enterprise is sold for $1500.0m.

The debt was $1000m at year 0 while the remaining $500m was for equity. It should be noted that at the fifth year, equity will be $1,000.0m while the debt will be $500m.

8 0
3 years ago
How does international employement helps in improving economic conditions of the country​
forsale [732]

Explanation:

Country can get lots of foreign currency as the remittance which can be used to establish industries in the country. Such industries provide job opportunities in the country.

People who go overseas to work can learn different skills and technologies which can be beneficial for the development of our own country.

7 0
2 years ago
Other questions:
  • Compute the present value of​ $46,000, invested for six years at​ 8%. Present value of​ $1: ​5% ​6% ​7% ​8% ​9% 3 0.864 0.840 0.
    10·1 answer
  • When the mutually exclusive alternatives under consideration have only disbursements (service alternatives), the do-nothing alte
    9·1 answer
  • A disadvantage of static budgets is that they a.do not allow for possible changes in activity levels b.show the expected results
    8·1 answer
  • Milano worked for twentieth television. she developed the concept for a reality television series called "from fat to phat," whi
    8·1 answer
  • The Ralston Company manufactures a special line of graphic tubing items. The company estimates it will sell 81,000 units of this
    9·1 answer
  • Locations of Transfer-Oriented Firms Assume the distance between the resource (R ) and the market (M) is 10 miles. A firm’s proc
    5·1 answer
  • Which of the following characteristics is a disadvantage of cloud-based hosting?
    8·1 answer
  • The following information is available for the pension plan of Swifty Company for the year 2020.
    8·1 answer
  • You are considering an investment project with an internal rate of return of 8.7 percent, a net present value of $393, and a pay
    8·2 answers
  • You discover an unattended email address or fax machine in your office receiving beneficiary appeals requests. You suspect no on
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!