Corporate Finance WGU D362 Terms
explained 100% correct answers
The loan Pricing Model - ANS Kl = PR + DRP + MAT
Term Loan - ANS A business loan with a maturity greater than 1 year
Shelf Registration - ANS A type of SEC registration that allows firms to register to sell
A
securities over a two-year period and, during that time, take the securities "off the shelf"
and sell them as needed
VI
General Cash Offer (Procedure) - ANS 1. Type of security and amount to be raised
2. Approvals
TU
3. Registration
4. Offer Price
5. Closing
IS
General Cash Offer - ANS Sale of securities open to all investors by an already-public
company
OM
Cost of an IPO - ANS 1. Underwriting
2. Out of pocket expense
3. Underpricing
Underwriting syndicate - ANS A group of underwriters that join forces to reduce
NA
underwriting risk
Best Effort Underwriting - ANS underwriting agreement in which the underwriter does
not agree to purchase the securities at a particular price but promises only to make its
JP
"best effort" to sell as much of the issue as possible above a certain price
Firm Commitment Underwriting - ANS the type of underwriting in which the
underwriter buys the entire issue, assuming full financial responsibility for any unsold
shares
Sarbanes-Oxley Act - ANS 1. Reduce agency costs in corporations
2. Restoring ethical conduct within the business
3. Improving the integrity of the accounting reporting systems within the firms.
explained 100% correct answers
The loan Pricing Model - ANS Kl = PR + DRP + MAT
Term Loan - ANS A business loan with a maturity greater than 1 year
Shelf Registration - ANS A type of SEC registration that allows firms to register to sell
A
securities over a two-year period and, during that time, take the securities "off the shelf"
and sell them as needed
VI
General Cash Offer (Procedure) - ANS 1. Type of security and amount to be raised
2. Approvals
TU
3. Registration
4. Offer Price
5. Closing
IS
General Cash Offer - ANS Sale of securities open to all investors by an already-public
company
OM
Cost of an IPO - ANS 1. Underwriting
2. Out of pocket expense
3. Underpricing
Underwriting syndicate - ANS A group of underwriters that join forces to reduce
NA
underwriting risk
Best Effort Underwriting - ANS underwriting agreement in which the underwriter does
not agree to purchase the securities at a particular price but promises only to make its
JP
"best effort" to sell as much of the issue as possible above a certain price
Firm Commitment Underwriting - ANS the type of underwriting in which the
underwriter buys the entire issue, assuming full financial responsibility for any unsold
shares
Sarbanes-Oxley Act - ANS 1. Reduce agency costs in corporations
2. Restoring ethical conduct within the business
3. Improving the integrity of the accounting reporting systems within the firms.
