To loosen credit, the Federal Reserve Board might take all of the following actions EXCEPT correct answers reducing taxes
Which of the following is TRUE regarding the preliminary proxy statements? correct answers Preliminary merger proxy statements are always required to be filed with the SEC bu...
Series 79 Diagnostic Exam 2 || A+ Guaranteed.
To loosen credit, the Federal Reserve Board might take all of the following actions EXCEPT
correct answers reducing taxes
Which of the following is TRUE regarding the preliminary proxy statements? correct answers
Preliminary merger proxy statements are always required to be filed with the SEC but
preliminary proxy statements are not
All of the following are true regarding the audit committee of a public company EXCEPT
correct answers An individual who is not on the company's board could be a member of the audit
committee as long as he/she is a financial expert
"Know-your-customer" rules apply to correct answers Customer accounts
A shareholder submits a bid in a Dutch auction tender that becomes the "clearing bid." Which of
the following statements is TRUE about this bid? correct answers It is an accepted bid
A fairness opinion is typically rendered in all of the following scenarios EXCEPT correct
answers a public acquirer making a small bolt-on acquisition to an existing platform
In a bankruptcy, which type of corporate security falls lowest in the priority of claims? correct
answers Common stock and warrants
A registered representative works in a branch office in North Carolina. Her firm's home office is
in the state of New York. While on vacation in Florida, she transacts general securities business.
The representative must be registered in correct answers I. North Carolina
III. Florida
Which of the following statements is correct regarding a broker-dealer's Firm Element training
requirement? correct answers Firm Element training applies to both representatives and
supervisory personnel
An individual is LEAST likely to owe a duty of trust with regard to material information in
which of the following situations? correct answers Corporate information is communicated to
him by a spouse
Jane, a member of the deal team structuring an IPO for a client company, discovers during due
diligence that the company does significant business with the Cuban government. After
consulting with her manager and the firm's AML compliance officer, Jane's broker-dealer
decides to file a Suspicious Activity Report. Under federal AML regulations, this report should
be filed correct answers within 30 days of Jane's discovery of the Cuban dealings
After an arbitration proceeding has been completed, a decision is to be rendered by the
arbitrators within correct answers 30 days of the end of the proceeding
, Which of the following assets would be LEAST likely to be structured into an asset-backed
security? correct answers Corporate equipment
A company has earnings of $2.40 per share for the most recent quarter and a stock price of $48.
It also pays a dividend of $0.30 per quarter. What is its dividend payout ratio? correct answers
12.50%
$0.30 / $2.40 = 12.5%
Use Exhibit 65 to answer the following question.
In 2013, Company B expects Net Income to increase by 12% and it plans to increase dividends
per share by 10%. Also, at the beginning of 2013 the company will repurchase 500,000 shares of
stock. What is the company's expected dividend payout ratio in 2013? correct answers 15.35%
All of the following statements are true about convertible bonds EXCEPT correct answers a
bond cannot be both callable and convertible
A company is engaged in an intensive research effort that is increasing its spending on research
and development substantially. What will be the immediate impact of the spending on the
company's gross profit margin, assuming that it does not expect to recognize revenues from this
increased spending for a number of years? correct answers Gross profit margin will stay the
same
XYZ Corp. reports quarterly results as follows:
Operating earnings - ($15 million)
Depreciation and amortization - $45 million
Taxes - ($5 million)
Interest expense - $60 million
What is its EBITDA for this period? correct answers $30 million
($15MM) + $45MM = $30MM
Fast Movers, Inc. buys a new van for $40,000. The van has a useful life of 8 years and a salvage
value of $3,000. For accounting purposes, Fast Movers, Inc. depreciates the van on a straight line
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