Reference no: EM13878011
1. Lisa is interested in purchasing 1,000 shares of TJH, Inc. when the shares are issued. Her broker just gave Lisa a preliminary prospectus on these shares for her to review as she waits for the shares to be cleared for sale. What is the name of this prospectus?
a. Red herring
b. Tombstone
c. Green Shoe
d. Rights offer
e. Spread
2. The quiet period is designed to do which one of the following?
a. Ensure that all potential investors have fair access to identical information.
b. Ensure that all bidders are heard in a Dutch auction.
c. Quiet the market so the SEC can fairly evaluate a new securities offer.
d. Prevent the original investors in a firm from selling their shares and destabilizing a security's price during the first six months of public trading.
e. Stabilize the aftermarket.
3. What is a prospectus?
a. a letter issued by the SEC authorizing a new issue of securities
b. a report stating that the SEC recommends a new security to investors
c. a letter issued by the SEC that outlines the changes required for a registration statement to be approved
d. an advertisement in a financial newspaper that describes a security offering
e. a document that describes the details of a proposed security offering along with relevant information about the issuer
4. Lewis Materials recently offered 15,000 shares of stock but only received payment for 12,500 shares since that was all the shares the underwriters could sell. What type of underwriting was this?
a. Dutch Auction
b. Firm commitment
c. Private placement
d. Syndicated
e. Best efforts
5. Which one of the following projects is most likely to be financed with venture capital?
a. Additional warehouse space for a profitable trucking firm
b. New product for an international plastics manufacturing company
c. Domestic outlet for a large global exporter
d. Seasonal merchandise for a major retailer
e. Prototype for a newly patented hand tool by an individual inventor
|
What is the modified internal rate of return of project
: Moordian Corporation estimates that its required rate of return is 11 percent. The company is considering two mutually exclusive projects whose after-tax cash flows are as follows: Project S CF(0) = ($3,000) CF(1) = 2,500 CF(2) = 1,500 CF(3) = 1,500 ..
|
|
What nominal annual rate will they charge their customers
: Bank 1 lends funds at a nominal rate of 10% with payments to be made semiannually. Bank 2 requires payments to be made quarterly. If Bank 2 would like to charge the same effective annual rate as Bank 1, what nominal annual rate will they charge their..
|
|
What is the tax liability
: Capital Foods purchased an oven 5 years ago for $45,000. The oven is being depreciated over its estimated 10 year life using the straight line method to a salvage value of $5,000. Capital is planning to replace the oven with a more automated one that..
|
|
Calculate the future value for each dollar invested
: First National Bank pays 6.8% interest compounded semiannually. Second National Bank pays 6% interest, compounded monthly. Calculate the future value for each dollar invested in First National (Assume you invest $1).
|
|
What is a prospectus
: Lisa is interested in purchasing 1,000 shares of TJH, Inc. when the shares are issued. Her broker just gave Lisa a preliminary prospectus on these shares for her to review as she waits for the shares to be cleared for sale. What is the name of this p..
|
|
What is the current yield on bonds-effective annual yield
: Bourdon Software has 8.6 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 107.1 percent of par. What is the current yield on the bonds?
|
|
Best describes initial public offering
: A major purpose of the prospectus is to: When underwriters issue securities on a best efforts basis, they: Stock underwriters are: Which one of the following best describes an initial public offering?
|
|
What is the percentage price change of these bonds
: Bond J has a coupon rate of 5 percent and Bond K has a coupon rate of 11 percent. Both bonds have 19 years to maturity, make semiannual payments, and have a YTM of 8 percent. If interest rates suddenly rise by 2 percent, what is the percentage price ..
|
|
Marketing responsibilities for securities offering
: Firms go public to. You own 100 of the 15,000 outstanding shares of Delta Movers stock. The firm just announced that it will be issuing an additional 5,000 shares to the general public in a cash offer at $22 per share. What type of event are you part..
|