Xy, Inc. has 180,000 shares of common stock outstanding, but no preferred stock. The current price of XY’s common stock is $30. It has also Net profit before taxes $385000 and the tax rate 40%. What is the company’s P/E-ratio? Select one: a. $23.43 O b. $14.08 C. $25 d. $22
A reduction in each previous shareholder’s fractional ownership resulting from the issuance of additional shares of common stock. This is called:
Select one: O a. A preemptive right O b. Dilution of earnings O c. Rights d. Dilution of ownership
Find the price for a stock given that the next dividend is $4.82 per share, the required return is 11.9%, and the growth rate in dividends is 5.9% per year
. Select one: a. $77.01 b. $80.33 c. $84.23 O d. $89.64
Behavioral finance is a growing body of research that focuses on investor behavior and its impact on investment decisions and stock prices. An underwriting syndicate is a group of other bankers formed by an investment banker to share the financial risk associated with underwriting new securities. An investment banker is a financial intermediary that specializes in selling new security issues and advising firms with regard to major financial transactions. The investment banker also provides the issuer with advice about pricing and other important aspects of the issue. A red herring is a preliminary prospectus made available to prospective investors during the waiting period between the registration statement’s filing with the SEC and its approval.