Question
1. Assume there are 5 seats to vote in the board of directors. There are only three shareholders: Arnold (100 shares), Beth (40 shares), and
1. Assume there are 5 seats to vote in the board of directors. There are only three shareholders: Arnold (100 shares), Beth (40 shares), and Charles (60 shares). With cumulative voting Charles can elect at least _________.
Select one:
a. zero directors
b. one director
c. two directors
d. three directors
2If a savings account pays an annual interest of 2% compounded quarterly, then the quarterly interest rate should be less than 0.5%.
Select one:
True
False
3.If a company is liquidated, preferred shareholders have a first claim on the company assets than subordinate debt holders.
Select one:
True
False
4Assume you invest $20,000 with expected cash flows of $10,500 and $11,025 in periods one and two respectively. If the discount rate is 5% then the net present value of your investment is $1,525.
Select one:
True
False
5.An example of indirect finance is when companies issue bonds instead of getting loans from commercial banks.
Select one:
True
False
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started