Yes it is correct, your answer is correct.
Correct/Complete Question: Transfer of an order instrument by indorsement and delivery warranty liability to any subsequent holder who takes the instrument in good faith. True or False
Answer:
True
Explanation:
A warrant liability can also be called a borrower's liability and it is the responsibility incurred by a borrower on a borrowed instrument.
When an instrument is transferred to a borrower by indorsement, the borrower has the warrant liabilty extended to him. When the instrument transferred is not done with indorsement, only the lender has the warranty liability.
Cheers.
Answer:
5) Dealer
Explanation:
1) Broker: A person who arranges a transaction between two parties
2) Commission Broker: The person who executes buy and sell orders on behalf of customers.
3) Floor Broker: The person who executes buy and sell orders on the floor of an exchange and charges his fee for it.
4) Floor Trader: The person who buys and sells for his personal account and owns a trading license.
5) Dealer: An agent who buys and sells securities from inventory.
Answer: D
Explanation: A capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated separately from capital structure decisions. In reality, these decisions may be highly interwoven. This interweaving is most apt to result in firms accepting some negative NPV all-equity projects because changing the capital structure adds enough positive leverage tax shield value to create a positive NPV.An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its cost of capital.
In theory, debt financing offers the lowest cost of capital due to its tax deductibility. However, too much debt increases the financial risk to shareholders and the return on equity that they require. Thus, companies have to find the optimal point at which the marginal benefit of debt equals the marginal cost. As it can be difficult to pinpoint the optimal structure, managers usually attempt to operate within a range of values. They also have to take into account the signals their financing decisions send to the market.
A company with good prospects will try to raise capital using debt rather than equity, to avoid dilution and sending any negative signals to the market. Announcements made about a company taking debt are typically seen as positive news, which is known as debt signaling. If a company raises too much capital during a given time period, the costs of debt, preferred stock, and common equity will begin to rise, and as this occurs, the marginal cost of capital will also rise.
To gauge how risky a company is, potential equity investors look at the debt/equity ratio. They also compare the amount of leverage other businesses in the same industry are using on the assumption that these companies are operating with an optimal capital structure—to see if the company is employing an unusual amount of debt within its capital structure.
Answer:
<em>The management of Elextric Corp., a computer manufacturing company, wants the employees in the organization to contribute to the quality of the firm by making gradual, continuous improvements in their departments. Given this information, Elextric Corp. embraces an approach known as </em><em><u>Six </u></em><em><u>sigma</u></em>
<em>What</em><em> </em><em>is </em><em>Six </em><em>sigma?</em><em> </em>
<em>Six </em><em>sigma </em><em>refers</em><em> </em><em>to </em><em>a level quality that is near perfection.</em><em> </em><em>It </em><em>strives </em><em>for </em><em>a </em><em>detect </em><em>level </em><em>that </em><em>is </em><em>no </em><em>more </em><em>than </em><em>3</em><em>.</em><em>4</em><em> </em><em>parts </em><em>per </em><em>million</em><em>.</em><em> </em><em>As </em><em>a </em><em>methodology</em><em>,</em><em> </em><em>Six </em><em>sigma </em><em>refers </em><em>to </em><em>DMA</em><em>I</em><em>C </em><em>or </em><em> </em><em>D </em><em>M </em><em>A </em><em>I </em><em>C </em><em>a </em><em>methodology</em><em> </em><em>for </em><em>improvement</em><em> </em><em>named </em><em>after </em><em>its </em><em>five</em><em> </em><em>phases </em><em>of </em><em>d</em><em>efine</em><em>,</em><em> </em><em>measure,</em><em> </em><em>analyze,</em><em> </em><em>improve,</em><em> </em><em>and </em><em>control.</em>