The advantages of being publically traded include all of the following except: A. shareholders of a heretofore private corporation may also sell part of their holdings if the corporation decides to go public B. going public allows the firm to play the merger game, using marketable securities for the purchase of other firms C. D. corporate information on profit margins and product lines must be divulged the corporation may tap the security markets for a greater amount of funds by selling securities directly to the public through a public placement

Investment banking firms offer to facilitate the sale of securities to the public in a variety of ways. Which of the following methods guarantees the corporation with a pre - determined price for the securities? OA. a commission basis OB. a competitive bid Oc. a best efforts basis D. an underwriting di

Type of corporation Companies that are owned by a group of investors, who could also be associated with the company's management, make initial public offerings. Such companies are referred to as Initial public offering perfo publicly owned corporations closely held corporations When the demand for an initiar puvne uneny uru ur securlties exceeds the number of securities issued, the offering is deemed to be: O Oversubscribed O Undersubscribed Indigo Inc. is going public and issuing 150,000 shares of common stock. The capital raised in the IPO will fund the company's proposed expansion. A Dutch auction is used to allocate shares in the Indigo IPO. The following table shows the number of shares requested by potential investors in each row. Bids Number of Shares Requested Price per Share Bidder # 1 50,000 $56 Bidder # 2 100,000 54 Bidder # 3 150,000 52 Bidder # 4 200,000 50 Bidder # 5 250,000 48 Bidder # 6 300,000 46 What should be the firm's IPO offer price? O $48 O $54 O $55 O $52 O $57…

A. Provide brief explanations/definitions for each of the following:Tracking error, Asset Swaps, Liquidity Theory of the Term Structure, Contraction Risk.   B. Why would a corporation elect to raise funds via a securitization rather than a corporate bond?

Mikasa Enterprises needs additional funding and intends to sell its shares in the stock market thru an initial public offering (IPO). This transaction is considered as: A. Private placement B. Public offering C. Any of these D. Financial institution transaction

For what reason might a company purchase treasury stock? To increase shareholder liquidity To execute an acquisition through a share exchange To increase the number of outstanding shares of stock To reduce future income taxes

Which of the following statements is NOT CORRECT? (A) Going public establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares (B) Publicly owned companies have sold shares to investors who are not associated with management, and they must register with and report to a regulatory agency such as the SEC. (C) When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public." and the market for such stock is called the new issue market (D) It is possible for a firm to go public and yet not raise any additional new capital (E) When a coporation';s shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closaly, or privately, held.

Which of the following is INCORRECT description for private equity transactions? Group of answer choices a. There are liquid public markets for privately held securities such as NASDAQ. b. The process of creating value in private equity, whether building a brand-new company or turning around an            established one requires significant time and means a long-term relationship. c. The general partner participates actively in the governance of the investment d.  Private equity investing is a lot of work as gaining access to better opportunities requires active sourcing and           negotiation

Which one of the following statements is TRUE?   a. Creditors have a claim on a firm's earning stream through the dividend payments they receive.   b. One tool of corporate governance is a company's tax avoidance strategy.   c. One tool of corporate governance is stock repurchases.   d. One tool of corporate governance is how the company's charter affects the likelihood of a takeover.   e. One tool of corporate governance is choosing a good investment banker.

Which of the following is an appropriate goal for the firm? Select one:  a. All of these b. In secondary markets, outstanding shares of stock are bought and sold among investors. c. An active secondary market causes firms to sell their new debt or equity issues at a higher cost of funds. d. A secondary market allows investors to share their risk and return e. For an investor, the function of secondary markets is to provide profitability for the shares of securities they own.