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1) narrbegin: exhibit 22-1 liquidation
exhibit 23-1
narrend
if the company has $578,000 in funds to distribute to unsecured creditors, what
percentage of their claims are going to be satisfied if case iii occurs?
a.24.86%
b.75.14%
c.100%
d.56.35%
2) narrbegin: bavarian-bavarian merger
bavarian-bavarian merger
bavarian brew is planning on acquiring bavarian sausage in a pure exchange merger.
bavarian brews stock is currently trading at $45 and they set the exchange ratio at 1.80.
bavarian sausage has 75 million shares outstanding which are currently trading at $23 a
share.
twelve months after the merger bavarian brews stock price drops to $37.
narrend
if you owned 200 shares of bavarian sausage what would be the control premium?
a.252%
b.125%
c.52%
d.189%
3) you have the choice between investing in a corporate bond with a yield of 8% or a
municipal bond. if your marginal tax rate is 28%, what should be the yield on the
municipal bond in order to be competitive?
a.8.00%
b.5.76%
c.11.11%
d.13.69%
4) a security offering that raises capital for firms is called a(n)
a.primary security offering
b.secondary security offering
c.securitization
d.all of the above
5) which of the following is not true about common stockholders and preferred
stockholders?
a.preferred stockholders receive a fixed dividend each year
b.common stockholders vote to elect the members of the board of directors
c.preferred stockholders have a more senior claim on the firms assets in the event of
bankruptcy
d.preferred stockholders are considered the firms ultimate owners
6) john smith seeks $7.5 million from a vc fund. john and the vc agree that the company
should be ready to go public in 4 years. at that time the company should have a market
capitalization of $254.35 million. if the vc requires a 54% return on their investment,
what is the vcs stake at the time of the ipo?
a.$7.5 million
b.$42.18 million
c.$254.35 million
d.$36.74 million
7) a firm that moves from traditional inventory stocking methods to a just-in-time (jit)
system should expect to see
a.its inventory turnover decrease and its average age of inventory increase
b.its inventory turnover decrease and its average age of inventory decrease
c.its inventory turnover increase and its average age of inventory increase
d.its inventory turnover increase and its average age of inventory decrease
8) narrbegin: exhibit 7-1
exhibit 7-1
narrend
given exhibit 7-1, what is the expected variance?
a.957.38%
b.1058.69%
c.49.27%
d.32.54%
9) which of the following would not fall under the classification of a broker market?
a.new york stock exchange
b.american stock exchange
c.nasdaq
d.all of the above are classified as broker markets
10) which type of firm is more likely to follow a low-regular-and-extra-policy of
dividend payout?
a.one in a stable industry with stable earnings
b.one that recently experienced higher-than-normal earnings that are expected to be
temporary
c.one that recently experienced a downswing in earnings that is expected to be
temporary
d.none of the above
11) capital investment is also known as:
a.capital budgeting
b.capital hedging
c.capital spending
d.capital savings
