16. Which of the following statements is least accurate?
All else equal, investors prefer putable over callable shares.
Putable shares are more difficult to sell than callable shares.
The call option which is part of a callable share is a benefit to the issuer.
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17. Which of the following is least likely a main reason for a company to raise
capital by issuing equity securities?
To provide stock option-based incentives to employees.
To satisfy working capital requirements.
To finance the purchase of long-lived assets.
18. A company issues equity on a primary market:
To raise capital.
To increase return on capital.
To increase return on equity.
19. Which of the following is a primary goal for a company to raise equity
To make acquisitions.
To fulfil debt requirements.
To finance revenue generating activities
20. Which of the following is least accurate in describing company’s book value?
Book value increases when a company pays little or no dividend.
Book value is based on what investors expect will happen in future.
Market value and book value are rarely equal.
UGC NET PAPER 1
UGC NET Management
UGC NET COMPUTER SCIENCE
UGC NET COMMERCE
GATE COMPUTER SCIENCE
CFA Level 1
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