Extra Notes Flashcards
What’s the benefit of a dual class voting structure
Allows management to make better long term decisions that may have a short term implications when control is wielded by a small group of shareholders with superior voting rights
When given the flotations costs with the DDM should we include it in the calculation?
Yes, unless mentioned otherwise
The post audit step mentions?
Systematic errors and the provisions of future investment ideas
When given no required rate of return for a perpetuity cash flow use?
The IRR
What’s is the most used ESG investing method?
Negative screening
What do we call the protection of the minority’s interest upon a firm acquisition
Sell out rights, which forces the acquisition to buy the minority shares at a specified prices, even if they disagree.
What is cross-shareholding?
A company holding shares in another company
What prices should we use in calculating cost of common and preferred stock?
The most recent market price
What industry do stranded assists belong to?
Energy
What are time deposits
A short term security used by corporations to invest in their excess capital
An investment policy statement at the corporate level should include?
Types of securities to invest in (however shouldn’t not excluded issuers)
Should include specific informations on who is allowed to invest in the securities
Steps taken when investment guidelines are violated
The policy statement should not be overly restrictive
A hostile takeover is not approved by?
Management
