fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
C) Agreeing to expand the company at the expense of stockholders' value.
D) Agreeing to pay bonuses based on the market value of the company stock.
E) Increasing current costs to increase the market value of the stockholders' equity.
50) Which one of the following statements is correct concerning the listing of stock on an exchange?
A) The TSX has the most stringent listing requirements of any Canadian stock exchange.
B) Any firm can list their stock on any exchange they desire.
C) All exchanges have the same listing requirements.
D) Listing requirements are established by the Ontario Securities Commission.
E) The number of shareholders is NOT a listing consideration for a stock.
51) Which of the following statements concerning auction markets is correct?
A) The TSX is an auction market.
B) NASDAQ is an auction market.
C) All trades involve a dealer in an auction market.
D) An auction market is called an over-the-counter market.
E) A market where buyers specify the lowest price they are willing to pay and sellers indicate the highest price they are willing to accept.
52) Capital structure decisions include which of the following?
A) Determining the number of shares of stock to issue.
B) Determining whether the firm should purchase or lease some equipment.
C) Allocating funds to the various divisions within the firm.
D) Evaluating the size of inventory to be kept on hand.
E) Evaluating the customer credit policy.
53) The document that legally establishes domicile for a corporation is called the:
A) Indenture contract.
B) Partnership agreement.
C) Amended homestead filing.
D) Bylaws.
E) Articles of incorporation.
54) NASDAQ is:
A) The largest financial market in the U.S. in terms of the total value of listed stocks.
B) Both an OTC and an auction market.
C) An electronic market trading solely in corporate and government bonds.
D) An electronic market which has no physical location.
E) A market with far fewer listings than the NYSE.
55) Which one of the following is a primary market transaction?
A) A dealer selling shares of stock to an individual investor.
B) A dealer buying newly issued shares of stock from a corporation.
C) An individual investor selling shares of stock to another individual.
D) A bank selling shares of a medical firm to an individual.
E) A sole proprietor buying shares of stock from an individual investor.