Solved by verified expert :29.
Retained
earnings represents
a.
a
pool of cash that the firm can use should a need for cash arise.
b.
the
increased market value, due to managements efforts, of all of the firms equity
securities issued.
c.
earnings
that a firm reinvested during the firm’s history.
d.
the
cumulative amount of cash that the firm has paid out in dividends.
30.
Usually,
only the riskiest type of firms will offer securities to the general public
through
a.
a
firm-comitment offering.
b.
a
competitive offering.
c.
a
negotiated offering.
d.
a
best-efforts arrangement.
31. Which of the following is not the responsibility of
the lead underwriter for an equity
issuance?
a.
price
stabilization of the issue
b. exercises discretion
over the distribution of shares for sale among the syndicate and the selling
group
c.
must
buy the shares in the green shoe option
d.
many
times serves as the market maker for trading in the issuers securities
32. Which of the following
is not an important consideration when an underwriter is trying to establish
the price for an initial public offering?
a.
the
underwriter’s reputation
b.
the
value of the firm
c.
the
demand for the securities of the issuer
d.
providing
the absolute maximum price possible for the issuer of the shares
33.
The
vast majority of initial public offerings have underwriting spreads that cost
the firm what percentage of the net capital raised?
a.
0.5%
b.
7.0%
c.
7.5%
d.
8.0%
34.
The
Over-the-Counter Market for trading equity securities is located
a.
in
New York City.
b.
in
Chicago.
c.
in
Boston.
d. none of the above
35.
The
largest stock exchange in the world is
a.
the
London Stock Exchange.
b.
the
New York Stock Exchange.
c.
the
NASDAQ.
d.
the
Paris Bourse.
