CFOs Are More Likely to Issue New Shares of Equity

question 51

Multiple Choice

CFOs are more likely to issue new shares of equity when

• A)their firm's stock price is relatively high.
• B)the market interest rates are high.
• C)their firm's stock price is relatively low.
• D)both B and C.

---

Definitions:

Record Keeping

The systematic process of creating, maintaining, and managing records or documents for the purpose of providing accurate evidence of business transactions and activities.

Simple Exponential Smoothing

A time series forecasting method for univariate data that considers the weighted sum of past observations, with the weights declining exponentially as the observations get older.

Previous Forecast

An estimation or prediction made in the past about future events or conditions, often used as a reference for current planning.

Four-month Moving Average

A method to smooth out data series by averaging the data over four-month periods, often used to identify trends.