Which of the following is most likely to increase share holders wealth?
A stock dividend.
B. A stock split.
C. A special dividend.
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If a companys after-tax borrowing rate is greater than the companys earning yield when the company repurchases stock with borrowed money, going forward, the earnings per share is most likely to:
A. increase.
B. decrease.
C. Remain unchanged.
Business risk is the combination of:
A. Operating risk and financial risk.
B. Sales risk and financial risk.
C. Operating risk and sales risk.
The NPV profiles of two Projects will intersect:
At their internal rates of return
B. If they have different discount rates.
C. At the discount rate that makes their net present values equal
Which of the following is least likely to enable a corporate board to exercise its duty by acting in the long-term interest of shareholders?
A. The board meets regularly outside the presence of management.
B. A majority of the board members are independent of firm management.
C. The board has representatives from key suppliers and important customers.