FIN 4200 EXAM 1 PREP | PRACTICE
QUESTIONS AND ANSWERS | FINANCE
STUDY GUIDE AND PRACTICE TEST
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Updated Questions and Answers
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,TB MC Qu. 15-57 d. $63,000
A firm has decided to sell 1,800 shares of stock through a Explanation
Dutch auction. The bids received are as follows: 600 shares at Total cash received = 1,800($35)
$37 per share, 800 shares at $36 per share, 900 shares at $35 Total cash received = $63,000
per share, 200 shares at $34 per share, and 100 shares at $32
per share. How much will the firm receive in total from selling
the 1,800 shares? Ignore all transaction and flotation costs.
Multiple Choice
a. $63,100
b. $52,500
c. $52,100
d. $63,000
e. $58,800
TB MC Qu. 15-15 d. crowdfunding.
The raising of small amounts of capital from a large number of
people is known as:
Multiple Choice
a. a rights offering.
b. a standby offer.
c. over allocating.
d. crowdfunding.
e. a diversified offer.
,TB MC Qu. 15-19 c. Initial public offering
A partnership has been extremely successful during its three
years of existence. The owners have decided to incorporate
and offer shares of stock to the general public. What is this
type of an equity offering called?
Multiple Choice
a. Venture capital offering
b. Seasoned equity offering
c. Initial public offering
d. Shelf offering
e. Private placement
TB MC Qu. 15-08 d. issue of less than $5 million
A(n) __________ does not require a registration statement to be
filed with the SEC.
Multiple Choice
a. loan of $10 million or less
b. issue that has an approved prospectus
c. issue that has received an approved letter of comment
d. issue of less than $5 million
e. loan that matures in one year or less
TB MC Qu. 15-54 b. Shelf registration
A firm recently registered 340,000 shares of stock under SEC
Rule 415. The company plans to sell 200,000 shares this year
and the remaining 140,000 shares next year. What type of
registration did the firm use?
Multiple Choice
a. Regulation A registration
b. Shelf registration
c. Regulation Q registration
d. Standby registration
e. Private placement registration
, TB MC Qu. 15-32 e. all successful bidders pay the same price per share.
With Dutch auction underwriting:
Multiple Choice
a. the bidder for the largest quantity receives the first
allocation of securities.
b. each winning bidder pays the minimum price offered by any
bidder.
c. the selling firm receives the maximum possible price for
each security sold.
d. all bidders receive at least a portion of the quantity for
which they bid.
e. all successful bidders pay the same price per share.
TB MC Qu. 15-53 b. 2 years.
Shelf registration allows a firm to register multiple issues at
one time with the SEC and then sell those registered shares
anytime during the subsequent:
Multiple Choice
a. 180 days.
b. 2 years.
c. 3 months.
d. 6 months.
e. 5 years.
QUESTIONS AND ANSWERS | FINANCE
STUDY GUIDE AND PRACTICE TEST
| GRADED A+ | GUARANTEED SUCCESS
Updated Questions and Answers
100% Verified Exam Prep
,TB MC Qu. 15-57 d. $63,000
A firm has decided to sell 1,800 shares of stock through a Explanation
Dutch auction. The bids received are as follows: 600 shares at Total cash received = 1,800($35)
$37 per share, 800 shares at $36 per share, 900 shares at $35 Total cash received = $63,000
per share, 200 shares at $34 per share, and 100 shares at $32
per share. How much will the firm receive in total from selling
the 1,800 shares? Ignore all transaction and flotation costs.
Multiple Choice
a. $63,100
b. $52,500
c. $52,100
d. $63,000
e. $58,800
TB MC Qu. 15-15 d. crowdfunding.
The raising of small amounts of capital from a large number of
people is known as:
Multiple Choice
a. a rights offering.
b. a standby offer.
c. over allocating.
d. crowdfunding.
e. a diversified offer.
,TB MC Qu. 15-19 c. Initial public offering
A partnership has been extremely successful during its three
years of existence. The owners have decided to incorporate
and offer shares of stock to the general public. What is this
type of an equity offering called?
Multiple Choice
a. Venture capital offering
b. Seasoned equity offering
c. Initial public offering
d. Shelf offering
e. Private placement
TB MC Qu. 15-08 d. issue of less than $5 million
A(n) __________ does not require a registration statement to be
filed with the SEC.
Multiple Choice
a. loan of $10 million or less
b. issue that has an approved prospectus
c. issue that has received an approved letter of comment
d. issue of less than $5 million
e. loan that matures in one year or less
TB MC Qu. 15-54 b. Shelf registration
A firm recently registered 340,000 shares of stock under SEC
Rule 415. The company plans to sell 200,000 shares this year
and the remaining 140,000 shares next year. What type of
registration did the firm use?
Multiple Choice
a. Regulation A registration
b. Shelf registration
c. Regulation Q registration
d. Standby registration
e. Private placement registration
, TB MC Qu. 15-32 e. all successful bidders pay the same price per share.
With Dutch auction underwriting:
Multiple Choice
a. the bidder for the largest quantity receives the first
allocation of securities.
b. each winning bidder pays the minimum price offered by any
bidder.
c. the selling firm receives the maximum possible price for
each security sold.
d. all bidders receive at least a portion of the quantity for
which they bid.
e. all successful bidders pay the same price per share.
TB MC Qu. 15-53 b. 2 years.
Shelf registration allows a firm to register multiple issues at
one time with the SEC and then sell those registered shares
anytime during the subsequent:
Multiple Choice
a. 180 days.
b. 2 years.
c. 3 months.
d. 6 months.
e. 5 years.
