37 - 40

37. If you think your company's stock is now substantially overvalued by the market, you would like to a. issue more shares. b. repurchase some shares. c. issue more bonds. d. call back your company's old bonds and issue new bonds. 38. If you think your company's stock is now substantially overvalued by the market and you want to acquire another company, which you think is undervalued by the market, you would to control the target company. a. pay cash to retire the target company's debt b. buy the target company's bonds c. pay cash to buy the target company's shares d. exchange your company's shares for the target company's shares 39. Your company wants to acquire another company. After you announce the merger intention to the public, the target company's stock price would a. decrease. b. increase. c. unchanged. d. none of the above. 40. You believe the market interest rate has already dropped to the bottom. You would a. issue more shares. b. repurchase some shares. c. call back your company's old bonds and issue new bonds. d. increase your company's cash dividends. Questions 35-40 end