A company may seek to raise further funds by issuing additional ordinary shares.The terms and conditions of the new share issue are determined by the board of directors in consultation with its financial advisers and others,and having regard to the preferences of existing shareholders and the needs of the company.Which of the following is LEAST likely to be a determinant of the price that is eventually struck?
A) The discount to current market price that can be offered to shareholders.
B) The company's cash requirements.
C) The projected earnings flow from the new investments.
D) The cost of alternative funding sources.
Correct Answer:
Verified
Q27: Which of the following is NOT a
Q28: Compared with raising debt through a bank,the
Q29: When a company undertakes an initial public
Q30: Generally,an initial public offering is:
A) an offer
Q31: Potential investors learn of the information concerning
Q33: Common shareholders are:
A) guaranteed a periodic distribution
Q34: Which of the following requirements does NOT
Q35: Holders of equity capital:
A) receive interest payments.
B)
Q36: A person who is authorised to vote
Q37: Companies can raise equity capital through:
A) the
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