Exam (elaborations)
FINA 210 Bmc quiz 2 summer solution 2024 Concordia University
- Course
- Institution
FINA 210 Bmc quiz 2 summer solution 2024 Concordia University
[Show more]
Seller
Follow
smartzone
Reviews received
Content preview
FINA 210 Bmc quiz 2 summer solution 2024Concordia University
, 1. Why companies do IPO’s?
a. When companies go bankrupt, they must delist
b. IPOs incentivize entrepreneurs to innovate IPOs provide a way for entrpreneurs
to monetize their work
c. Company management gets to ring the bell on stock exchange floor
d. Companies with revenue above a certain threshold must be publicly listed by law
2. Why do company manager-owners smile when they ring the stock exchange bell at
their IPO?
a. Manager-owners receive their first stake in the company at an IPO
b. Manager-owners are freed of the burden of managing their company
c. An IPO’s price goes up on the first day, generating guaranteed returns for investors
d. An IPO reveals the value of the manager-owners’ stake
3. The Dow Jones Industrial Average Index has an unusual weighting methodology.
Unlike the S&P 500, it is weighted by the share price. Here are 20 of the 30 members
of the Dow Jones on March 20, 2019. If all the shares went up by 5%, which share on
the screen shown would have the biggest contribution to an upward movement in the
index?
a. General Electric
b. Goldman Sachs
c. Exxon Mobil
d. Apple
4. In 1999, James Glassman and Kevin Hussett published a book called “Dow 36,000.”
At the time, the Dow Jones Industrial Average Index was just under 12,000. Which of
the following is a potential substitute for the book title?
a. “The Sum Of The Share Prices of All 30 Dow Jones Members Will Triple”
b. “The Sum of the Market Caps of All 30 Dow Jones Members Will Triple”
c. “The Total Market Cap of the Stock Market Will GO Down 36,000 Points”
d. “The Average Retirement Account of an Industrial Worker Will Triple”
5. What is the Prime reason that Jenny’s discretionary income is more volatile than
her salary?
a. Her tax rate remains 30%
b. Her cost of living is affected by high inflation in the neighborhood
c. Her mortgage payments and necessities are fixed
d. Her discretionary income and salary are equally volatile
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller smartzone. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81531 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now