FINANCE 6100 SUU EXAM 3 QUESTIONS WITH
COMPLETE SOLUTIONS
Acquisition Correct Answers 1 party buy out other, semi
voluntary
American Correct Answers Any time until maturity date
Asset Acquisition Correct Answers When one corporation
agrees to purchase the assets, such as property, buildings, and
equipment, of a second corporation
Benefits Correct Answers Payments, interest and penalties put
on hold
Collective bargaining agreement voided
Unfunded pension liabilities voided
Substantial incomplete projects voided
Forgiven debt is not taxed as income like private settlement
Tax loss carry forwards are not lost during bankruptcy
Call - exercise (strike) price Correct Answers Fixed price X
Call - expiration (maturity) date Correct Answers Certain date
T
Call - option premium Correct Answers Price paid by buyer to
seller to obtain right
Carve out Correct Answers 10% of parent ownership
transitions to 10% new company ownership
, Chapter 7 Bankruptcy Correct Answers Secured debt holders
Court costs and legal fees
Debtor in possession financing
Unpaid employees up to $11,000 wages
Unpaid employees up to $11,000 benefits
Customer deposits up to $2,600
Fisherman/Farmers
Unpaid tax claims
Unsecured debt claims
Preferred stock
Common stock
conglomerate merger Correct Answers the joining of firms in
completely unrelated industries
Corporate hedging process Correct Answers Identify risks
Difference of hedging and speculating
Cost of hedging with light of cost or not
Right measurement to evaluate hedge performance
Dont base on market view
Understand tools
System of controls
Define call Correct Answers Buy at prearranged price by set
date, prices rises
Define put Correct Answers Sell at prearranged price by set
date, price falls
COMPLETE SOLUTIONS
Acquisition Correct Answers 1 party buy out other, semi
voluntary
American Correct Answers Any time until maturity date
Asset Acquisition Correct Answers When one corporation
agrees to purchase the assets, such as property, buildings, and
equipment, of a second corporation
Benefits Correct Answers Payments, interest and penalties put
on hold
Collective bargaining agreement voided
Unfunded pension liabilities voided
Substantial incomplete projects voided
Forgiven debt is not taxed as income like private settlement
Tax loss carry forwards are not lost during bankruptcy
Call - exercise (strike) price Correct Answers Fixed price X
Call - expiration (maturity) date Correct Answers Certain date
T
Call - option premium Correct Answers Price paid by buyer to
seller to obtain right
Carve out Correct Answers 10% of parent ownership
transitions to 10% new company ownership
, Chapter 7 Bankruptcy Correct Answers Secured debt holders
Court costs and legal fees
Debtor in possession financing
Unpaid employees up to $11,000 wages
Unpaid employees up to $11,000 benefits
Customer deposits up to $2,600
Fisherman/Farmers
Unpaid tax claims
Unsecured debt claims
Preferred stock
Common stock
conglomerate merger Correct Answers the joining of firms in
completely unrelated industries
Corporate hedging process Correct Answers Identify risks
Difference of hedging and speculating
Cost of hedging with light of cost or not
Right measurement to evaluate hedge performance
Dont base on market view
Understand tools
System of controls
Define call Correct Answers Buy at prearranged price by set
date, prices rises
Define put Correct Answers Sell at prearranged price by set
date, price falls
