« previous next »

Author Question: If management perceives the current market equity value of their shares to be OVER valued, then ... (Read 87 times)

abern

  • Hero Member
  • *****
  • Posts: 533
on: Jul 11, 2018
If management perceives the current market equity value of their shares to be OVER valued, then management should:
 
  A) issue new shares later after stock prices have come down so as not to further increase the price dilution found when issuing shares.
  B) issue new shares now to take advantage of the market mispricing, but only if they believe the market is at least momentarily inefficient.
  C) wait to issue until prices are UNDER valued so that there option values increase more rapidly. However, they would only do this if they have the best interest of shareholders in mind.
  D) recommend that existing shareholders buy more shares at current market prices because they are so valuable.

Question 2

Which of the following statements about ocean marine insurance is true?
 
  A) The coverage is narrow and excludes perils of the sea.
  B) Hull insurance includes collision liability covering the ship's owner if the ship collides with another ship.
  C) Protection and indemnity (P&I) insurance covers the shipper of goods for cargo losses.
  D) A particular average loss is a loss incurred only if a ship is totally lost or destroyed.


234sdffa

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

Answer: B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Many types of edible fungi are grown for the market. Many types of edible fungi are grown for the market.
Opioids for Pain Management Opioids for Pain Management
Drawing of Central PompeII In Its Current State Drawing of Central PompeII In Its Current State
North Atlantic Current North Atlantic Current
International Business Management International Business Management
Current intensity and the frequency of action potentials Current intensity and the frequency of action potentials
Video: Renal Failure

For a complete list of videos, visit our video library