In Addition to Gaining Liquidity, Which of the Following Could

question 39

Multiple Choice

In addition to gaining liquidity, which of the following could also be considered a legitimate reason for cross-listing equity?

• A) enhance a firm's local image
• B) become more familiar with the local financial community
• C) get better local press coverage
• D) all of the above

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Definitions:

Residual Income

A measure of the income that exceeds the minimum required return on a company's investments or operations.

Divisional Income

The earnings generated by a specific division or segment of a larger company, used for evaluating the division's financial performance.

Minimum Acceptable

The lowest level or standard that will be considered satisfactory or acceptable.

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after all expenses are deducted.