Examlex
Explain the pecking order theory of capital structure.
Dilution
The reduction in existing shareholders' ownership percentage of a company due to the issue of new shares.
Shareholders' Value
The value delivered to shareholders because of management's ability to grow earnings, dividends, and share price.
Ownership
The legal right to possess, use, control, and dispose of an asset, property, or a share in a company.
Green Shoe Provisions
An over-allotment option in an IPO, allowing underwriters to buy up to an additional 15% of company shares at the offering price to manage excess demand.
Q6: Financial distress always results in bankruptcy.
Q29: The first step in a real options
Q54: If capital markets are efficient, then the
Q55: If an oil well allows the investor
Q57: Value of the debt = $30 millions;
Q58: Inclusion of restrictions in the bond contract
Q61: If the delta of a call option
Q65: If both dividends and capital gains are
Q78: Generally, convertible bonds are issued by:<br>A) smaller
Q92: Project finance requires a capital investment that