PRIN.OF CORP.FINANCE-CONNECT ACCESS
13th Edition
ISBN: 2810023360757
Author: BREALEY
Publisher: MCG
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Question
Chapter 33, Problem 11PS
Summary Introduction
To explain: The way a shareholder might gain control of Company Z.
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3. What are the stages in organizing a corporation?
4. What are the basic rights of a shareholder?
5. "what are the considerations that may be received in exchanged for share capital? What are the
measurement bases for such exchanges?
6. Differentiate an ordinary share capital from a preference share capital.
Describe what is IPO and what is involved in the IPO process. Do you think that it is better to buy shares in an IPO or shares in companies that are already listed on the stock exchanges? Why?
Which of the following is closest to IFRS 3 Business Combinations definition of control?
A company is deemed to have control over another only when it owns a majority of the voting shares of another company.
B. A company is deemed to have control when it can elect a majority of the Board members of another company.
C. Control is the ability to direct the activities of a company that most significantly affect the investor's returns.
D. Control exists only when a company has the continuing power to determine the operating and financing policies of another company and attempts to exercise such powers.
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