Fundamentals of Corporate Finance Study Set 23

Business

Quiz 15 :

Financial Leverage and Capital Structure Policy

Quiz 15 :

Financial Leverage and Capital Structure Policy

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Advertisements in a financial newspaper announcing a public offering of securities, along with a list of the investment banks handling the offering, are called:
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B

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What is an issue of securities that is offered for sale to the general public on a direct cash basis called?
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C

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Tony currently owns 12,000 shares of GL Tools.He has just been notified that the firm is issuing additional shares of stock and that he is being given a chance to purchase some of these shares prior to the shares being offered to the general public.What is this type of an offer called?
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D

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Shares of PLS United have been selling with rights attached.Tomorrow, the stock will sell independent of these rights.Which one of the following terms applies to tomorrow in relation to this stock?
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What is the definition of a syndicate?
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Miller & Chase is offering $4 million of new securities to the general public.Which SEC regulation governs this offering?
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What is a prospectus?
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Soup Galore is a partnership that was formed three years ago for the purpose of creating, producing, and distributing healthy soups in a dried form.The firm has been extremely successful thus far and has decided to incorporate and offer shares of stock to the general public.What is this type of an equity offering called?
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The date on which a shareholder is officially listed as the recipient of stock rights is called the:
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Jones & Co.is funded by a group of individual investors for the sole purpose of providing funding for individuals who are trying to convert their new ideas into viable products.What is this type of funding called?
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The difference between the underwriters' cost of buying shares in a firm commitment and the offering price of those securities to the public is called the:
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Executive Tours has decided to take its firm public and has hired an investment firm to handle this offering.The investment firm is serving as a(n):
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Which one of the following is a preliminary prospectus?
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What is a seasoned equity offering?
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A rights offering in which an underwriting syndicate agrees to purchase the unsubscribed portion of an issue is called a _____ underwriting.
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Denver Liquid Wholesalers recently offered 50,000 new shares of stock for sale.The underwriters sold a total of 53,000 shares to the public.The additional 3,000 shares were purchased in accordance with which one of the following?
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The 40-day period following an IPO during which the SEC places restrictions on the public communications of the issuer is known as the _____ period.
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Blue Stone Builders recently offered to sell 45,000 newly issued shares of stock to the public.The underwriters charged a fee of 8 percent and paid Blue Stone Builders $16.40 a share on 40,000 shares.Which one of the following terms best describes this underwriting?
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D.L.Jones & Co.recently went public.The firm received $20.80 a share on the entire offer of 25,000 shares.Keeser & Co.served as the underwriter and sold 23,700 shares to the public at an offer price of $22 a share.What type of underwriting was this?
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What is the form called that is filed with the SEC and discloses the material information on a securities issuer when that issuer offers new securities to the general public?
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