3)

5&6)

7)

11&12)

13)

lipti 3) in which voting process are outsiders more likely to win seats on the board of directors? Cumulative Voting Majority Voting Minority Voting Staggered Voting None of the above (1 pts) 5) A corporation's net worth is composed of the: book value of common equity plus par value of debt. D par value plus additional paid-in capital. O retained earnings less treasury stock. O book value of common equity plus preferred stock. None of the above 6) Preferred stock dividends: (1 pts) O have preference over bond interest payments. are guaranteed to be paid at least annually. 0 are excluded from the taxable income of their recipients. have priority over common stock dividends. O None of the above (Ipts) 7) Which one of the following statements about floating-rate preferred stock is correct? Its dividends increase as interest rates increase, Its market price increases at a set rate annually. It is the only stock issued without a par value. Its dividends are deductible for tax purposes by the paying corporation All of the above 11) An investor might prefer floating-rate debt if she thought that: (1 pts) interest rates would rise interest rates would decline its bonding rating might be lowered its bods were going to be converted into equity All of the above 12) The value of retained earnings on the corporate balance sheet represents the amount of earnings: o not paid out in dividends this period that are being held in cash over and above corporate income taxes reinvested in the firm since its inception None of the above 13) A company's board of directors is primarily an agent of the company's O management o employees shareholders O management and employees O None of the above