Series 79, Fact Sheet fully solved rated A+ 2024

Series 79, Fact Sheet A company has reported risk factors on the annual 10-K, and there are material changes to those risk factors. What does the company do? - correct answer Report any material changes on the next 10-Q. (1) IRS Rule 388(h)(10 - correct answer Allows a purchaser to treat an equity acquisition as an asset sale for tax purposes. The purchaser would benefit from a stepped up basis as a result. (2) An acquirer pays a golden parachute to an executive of a target company in excess of the executive's average compensation for the last 5 years. What are the tax implications to the company and to the executive? - correct answer The amount in excess of average compensation is not tax deductible to the company, and the recipient will be required to pay a 20% excise tax. (3) A new entrant successfully enters an established industry, but there is no discernible loss of revenue or market share to existing competitors. What is the (a) likely cause? - correct answer The new entrant likely found a new niche market to target with its product. (4) T/F: When a broker dealer prepares a fairness opinion for an Acquirer's BOD, the sell-side adviser and Target BOD has the opportunity to preview the opinion. - correct answer False. The sell-side adviser and Target board of directors will not preview the opinion. (5) What does a (Nasdaq) quote of 27.10-27.20 mean? - correct answer Means bid price of 27.10 and offer price of 27.20. The bid is always listed before the offer. (6) T/F: A preliminary prospectus is considered neither an offer nor solicitation for securities. - correct answer TRUE. A preliminary prospectus is considered neither an offer nor solicitation for securities. (7) Are profits from an investment in a Subchapter S Corporation eligible for capital gains tax rates? - correct answer No, S Corp profits are taxes at the ordinary income tax rate. (8) Are profits from an investment in a Subchapter C Corporation eligible for capital gains tax rates? - correct answer Yes, but only if held for more than one year. (9)