Long-Term Financing: An Introduction

In the context of shareholder rights, what is the primary mechanism through which shareholders control a corporation?

A corporation has 10,000 outstanding shares and is electing four directors. Under a cumulative voting system, what is the minimum number of shares required to guarantee election to one seat on the board?

What is a 'proxy fight' in the context of corporate governance?

Which of the following statements accurately describes the tax treatment of corporate dividends in the U.S.?

What does it mean for preferred stock dividends to be 'cumulative'?

Which of the following is a primary difference between debt and equity from a financial point of view?

What is the primary function of a bond indenture?

What is the defining characteristic of a debenture?

What is the purpose of a sinking fund in a bond issue?

What is a 'make-whole' call provision in a corporate bond?

Which of the following would be an example of a negative covenant in a bond indenture?

What is the defining feature of floating-rate bonds (floaters)?

A business has a revolving line of credit for EUR 75 million with a three-year commitment and a commitment fee of 0.20 percent on the unused portion. If the corporation borrows EUR 25 million in a particular year, what is the dollar commitment fee for that year?

What is the key difference between a Eurobond and a foreign bond?

Based on observed financing patterns in the U.S., what has been the dominant source of financing for nonfinancial corporations?

What is meant by a 'financial deficit' in the context of corporate financing patterns?

Why do financial economists generally prefer using market values over book values when calculating debt ratios?

What is the effect of 'staggering' the election of a board of directors?

What is a 'preemptive right' for a stockholder?

Which characteristic distinguishes a 'note' from a 'bond' in common usage?

A corporation with a single class of stock has 800,000 shares outstanding. An election for three directors is being held. If the company uses straight voting, how many shares must a single shareholder control to guarantee that they can elect all three directors?

What is the primary motivation for companies to create exotic hybrid securities that have features of equity but are treated as debt for tax purposes?

What does the term 'seniority' refer to in the context of a debt instrument?

A 'put bond' contains a provision that benefits which party?

Which of the following financing trends was observed for U.S. nonfinancial corporations between 1995 and 2010?