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please F F Fin 36. What is an advantage to a small business in listing on the stock exchange (b) Increasing the competitive information that
please F F Fin 36. What is an advantage to a small business in listing on the stock exchange (b) Increasing the competitive information that will be made available to it. Being taken over by a larger business during a period of low sales and profits. The guarantee of an immediate increase in earnings to initial owners through the inflow of cash from the initial share offering. The opportunity to raise its profile and thus improving its chances in attracting better strategic partnerships and financing opportunities. The signif The significant cost reductions available for future debt and equity financing (d) (e) What is the main role of a stock exchange? (a) (b) (c) (d) (e) To act as a primary and secondary capital market for businesses. To act as a primary capital market for businesses. To act as a secondary capital market for businesses. To act as a primary capital market for businesses and government. To act as a secondary capital market for businesses and government. 38. Which of the following is a significant implication of stock market efficiency? (a) (b) (c) The market offers managers an informed and objective critique of their performance. Timing of a new share issue is critical to its success. A search for undervalued businesses will provide lucrative take-over targets. Businesses must take seriously the setting of the level of risk and appropriate return on an investment. Altering the type of security may make the initial offering more appealing to investors. (d) (e) 39. How is a dividend is paid out? (a) Only in cash. (b) In cash and/or common shares. (c) In cash and/or preferred shares. (d) In cash, common shares and/or preferred shares. (e) In cash, common shares and/or other assets
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