Friday, October 7th, 2016

Finance Questions, can someone please help answer?

1. Typically Corporations with Finance Operations or _______a Either ______. Bank loans, Lines of Creditb. Silver, Goldcar. Certificates of Deposit, Bondsd Convertible. Debt, Equity2. Which of the Following is Considered short-term (less than one year) debt. A mortgageb. A T-billc. A 10 year bond has 6 months left That Until maturityd. One share of common stock3. Why Might a firm choose to issue common stock as Opposed to Another Financial instrumented. To look credible to investorsb. To Avoid giving away rightsc voting. To Maintain tight controld ownership. To Maintain Low Levels of debt on balance Sheet4 STIs. Moody’s downgraded the debt s just of Buffalo Wild Wings based on the Possibility That the company default on STI Will bonds. Being All things equal, we expect the interest rate Would Buffalo Wild Wing on? S bonds to? A. Increase, Will Investors view the debt as more riskyb. Decrease, lower rated debt have a lower interest RATEC. Stay the Same, customers Will Continue to eat at Buffalo Wild Wings Because They Have the tastiest wings in town and 45 cent wing Tuesdaysd. Decrease, Will Investors rush to buy up Buffalo Wild Wing bonds5. A train leaves the station traveling west at 6pm at 80 mph. A second train leaves the station 3 hours later. The driver is holding a debt instrument I just Received from historical broker. Which of These Could Be That debt instrument? A. A long term bondb. A stock certificatec. Preferred stockd. An American Depository Receipt6. Arbitrage isa. A common trading strategy hedge WHERE Investors with Financial derivativesb Their positions. An old way of pricing optionsc. When the Financial Corporations marketsd manipulate. The practice of finding WAS With No risk7 to profit. A company Publicly traded That Is Currently decide to issue new shares. Issuing additional shares to the These market is calleda. Micro-lendingb. A secondary offeringc. An initial public offeringd. Financing8 Mezzanine. Above The company decide to go ahead and offer the new shares. What type of bank Would the company go to for help in underwriting the new securities? A. A retail bankb. A central BankCo. An investment bankd. The food bank

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2 Responses to “Finance Questions, can someone please help answer?”
  1. JKRB says:

    1. Corporations typically finance operations with either ______ or _______
    d. Debt, Equity

    2. Which of the following is considered short-term (less than one year) debt
    b. A T-bill

    3. Why might a firm choose to issue common stock as opposed to another financial instrument
    d. To maintain low levels of debt on its balance sheet

    4. Moody’s just downgraded the debt of Buffalo Wild Wings based on the possibility that the company will default on its bonds. All things being equal, we would expect the interest rate on Buffalo Wild Wing’s bonds to…
    a. Increase, investors will view the debt as more risky

    5. A train leaves the station at 6pm traveling west at 80 mph. A second train leaves the station 3 hours later. The conductor is holding a debt instrument he just received from his broker. Which of these could that debt instrument be?
    a. A long term bond

    6. Arbitrage is
    d. The practice of finding was to profit with no risk

    7. A company that is currently publicly traded decides to issue new shares. Issuing these additional shares to the market is called
    b. A secondary offering

    8. The company above decides to go ahead and offer the new shares. What type of bank would the company go to for help in underwriting the new securities?
    c. An investment bank

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