CLAW2201 Week 6: COMPANY FINANCE: 1. EQUITY FINANCE- fundraising through share issues a) Share Capital: i. Issue of shares * S124(1)(a): A company has a right to issue and cancel shares in the company. * S198A(1): The board of directors has discretion as to when and how to issue shares * S254B(1): A company may determine: * The terms of which its shares are issued; and * The rights and restrictions attaching to the shares. * S254D(1) CA: In a proprietary
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years. A) more than B) less than C) the same as D) an amount unrelated to what ANSWER: ______________ 3) The opportunity cost of leisure will rise if A) the wage rate increases. B) the wage rate decreases. C) nonlabor income increases. D) nonlabor income decreases. ANSWER: ______________ 4) A rise in the interest rate A) decreases the opportunity cost of consuming today. B) increases the opportunity cost of consuming in the future. C) increases the opportunity cost of consuming today
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TUTORIAL ONE 1. What is monetary policy and who is responsible for its implementation? Monetary policy is the use of interest rates to control inflation, usually in a specified range, and to promote economic growth. Usually a central bank is responsible for the carrying out of monetary policy 2. Explain what a debt security is. What are some common types of debt securities? How is debt different from equity? A debt security represents a contractual claim against the issuer of the
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of directors. Dividends: Interest payments to shareholders. Dividend Imputation: introduce by Nz&Aus to encourage investment, prevent double tax on dividends. Preferred Stock: hybrid security combining features of both debt (fixed dividends) and equity (potential appreciation), and has a prior claim on earnings and assets compared to a common stock but ranks bellows all debt and other creditors. Usually as no maturity date. Dividends paid on preferred stock are not tax deductible
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3 2. International Monetary System Suggested Answers and Solutions to End-of-Chapter Questions and Problems 12 3. Balance of Payments Suggested Answers and Solutions to End-of-Chapter Questions and Problems 17 4. The Market for Foreign Exchange Suggested Answers and Solutions to End-of-Chapter Questions and Problems 23 5. International Parity Relationships Suggested Answers and Solutions to End-of-Chapter Questions and Problems 33 6. International Banking Suggested Answers and Solutions
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objective of a firm? A. employees' benefits B. satisfaction of customers C. satisfaction of suppliers D. prompt payment to creditors * E. maximize stockholder wealth 2. Financial risk involves ___. A. fluctuation in exchange rates B. different interest and inflation rates C. balance of payments position D. A and B * E. A, B, and C 3. Three sweeping changes include ___. A. the end of Cold War B. industrialization and growth of the developing world C. the creation of the North
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believed that the renminbi (RMB), failed to appreciate eliminating job opportunities for other countries. However, China’s officials reacted by implying that China was a sovereign country with the right to choose its exchange rate policy. Pertinent Facts The exchange rate is one of the key factors that could possibly affect foreign profitability. In the case, Fung and Wong indicated in 2006, that China had become the world’s third-largest exporter with an estimated $970 billion and earning
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IDB WORKING PAPER SERIES No. IDB-WP-211 Macroeconomic Effects of China’s Fiscal Stimulus Pietro Cova Massimiliano Pisani Alessandro Rebucci September 2010 Inter-American Development Bank Department of Research and Chief Economist Macroeconomic Effects of China’s Fiscal Stimulus Pietro Cova* Massimiliano Pisani* Alessandro Rebucci** * Bank of Italy ** Inter-American Development Bank Inter-American Development Bank 2010 Cataloging-in-Publication data provided by the Inter-American
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Investments in Marketable Equity and Debt Securities (SFAS #115, for fiscal years beginning after 12/5/1993) |Reporting Category |Classification Criteria | |Held to Maturity |Debt securities the investor has the positive intent and ability to hold to maturity | |Trading Securities |
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period: that time period, typically one year, to which financial statements are related. Accounting policies: the specific accounting bases selected and followed by a business enterprise (e.g. straight line or reducing balance depreciation). Accounting rate of return: a ratio sometimes used in investment appraisal but based on profits not cash flows. Accounting standards: Prescribed methods of accounting by the accounting standards or financial reporting standards regulation body in your jurisdiction
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