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true or false The capital structure of a firm is the total capital divided by the ordinary shares and preference Over capitalization shares.is good for
true or false
- The capital structure of a firm is the total capital divided by the ordinary shares and preference
- Over capitalization shares.is good for the company because the company has more capital than it needs.
- Ordinary shares represent a residual ownership position in the corporation.
- The market value of shares is enhanced by dividend and therefore share capital is not free
- A capital investment is one that is undertaken by only large corporations.
- The market price of common stock is determined by individuals buying and selling the stock.
- The value of a bond will be lower than the par value when both the coupon rate and the discount rate is the same.
- The price at which the bond is traded in the stock exchange is the maturity value.
- Shareholder wealth in a company is the value of the company assets less its liabilities.
- The objective of financial management is to maximize the share of the companys market.
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