Question
please answer these and explain 1.Why might a corporation call its issued bonds prior to their maturity? 2.What is a Proxy Fight and how might
please answer these and explain
1.Why might a corporation call its issued bonds prior to their maturity?
2.What is a Proxy Fight and how might it be used to overthrow a firm's leadership? Provide two (2) ways that firm management can fight back against proxy fights and takeovers.
3.Our course textbook describes the inventory turnover ratio as sales divided by inventories. Why might cost of goods sold instead be a more useful numerator when calculating this ratio?
4.Portfolio risk typically consists of two (2) different types of risk. Name each type of risk and describe the potential impact on asset portfolios. Can each type of risk be reduced or eliminated? Why or why not?
5.Common stockholders with a Preemptive rights clause may purchase additional shares of stock in the company on a pro rata or proportional basis if the company issues new shares. Why is this an important feature for stockholders?
6.Explain how leveraging up a company's balance sheet might shift risk from shareholders to creditors. What is the payoff for this strategy?
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