Question : MULTIPLE CHOICE 1.Which law mandated the separation of investment and commercial : 1325723

MULTIPLE CHOICE

 

1.Which law mandated the separation of investment and commercial banking?

a.Gramm-Leach-Bliley Act

b.McFadden Act

c.Glass-Steagall Act

d.none of the above

 

 

 

2.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

 

 

 

3.A bond sold by foreign corporations to U.S. investors is called a(n)

a.Eurobond

b.foreign bond

c.Yankee bond

d.none of the above

 

 

 

4.A bank that helps firms to acquire external capital is called a

a.commercial bank

b.savings bank

c.investment bank

d.credit union

 

 

 

5.Which of the following is not considered an advantage of going public?

a.new capital for the company

b.listed stock for use as compensation

c.stock price emphasis

d.personal wealth and liquidity

 

 

 

6.Bavarian Brewhouse is planning on going public. Under the underwriting agreement the underwriting discount is 7.25%. If the offering price of the stock is set at $12.50 per share, what is the per share proceeds that Bavarian will receive?

a.$11.59

b.$10.67

c.$13.41

d.$12.50

 

 

 

7.Bavarian Brewhouse is planning on going public. Under the underwriting agreement the underwriting discount is $1.25 per share. If the offering price of the stock is set at $12.50 per share, what is the percentage underwriting discount?

a.8%

b.9%

c.10%

d.11%

 

 

 

8.Bavarian Brewhouse is planning on going public. Under the underwriting agreement the underwriting discount is 7.25%. If the offering price of the stock is set at $12.50 per share and the company is planning on issuing 1 million shares, what are the total proceeds that Bavarian will receive?

a.$12,500,000

b.$11,593,750

c.$10,750,000

d.$13,275,500

 

 

 

9.Bavarian Brewhouse is planning on going public. Under the underwriting agreement the underwriting discount is $1.25. If the offering price of the stock is set at $12.50 per share and the company is planning on issuing 1 million shares, what are the total proceeds that Bavarian will receive?

a.12,500,000

b.11,250,000

c.13,750,000

d.10,875,000

 

 

 

10.Bavarian Brewhouse is planning on going public. Under the underwriting agreement the underwriting discount is 7.25%. If the offering price of the stock is set at $12.50 per share, how many shares does the company have to issue to raise $75 million?

a.6,000,000

b.6,469,003

c.5,567,400

d.5,000,000

 

 

 

11.Bavarian Brewhouse is planning on going public. Under the underwriting agreement the underwriting discount is $1.30. If the offering price of the stock is set at $12.50 per share, how many shares does the company have to issue to raise $75 million?

a.6,000,000

b.5,789,452

c.5,000,000

d.6,696,429

 

 

 

12.Bavarian Brewhouse is planning on going public. Under the underwriting agreement the underwriting discount is $1.30. Legal and other expenses amount to $1,350,000. If the offering price of the stock is set at $12.50 per share, how many shares does the company have to issue to raise $75 million?

a.6,696,429

b.6,816,964

c.6,000,000

d.5,769,345

 

 

 

13.Bavarian Brewhouse is planning on going public. Under the underwriting agreement the underwriting discount is 7.25%. Legal and other expenses amount to $1,350,000. If the offering price of the stock is set at $12.50 per share, how many shares does the company have to issue to raise $75 million?

a.6,108,000

b.6,585,445

c.6,696,429

d.7,124,359

 

 

 

 

 

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