Full Test Series 79 Question and answers correctly solved
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Course
GARP
Institution
GARP
Full Test Series 79 Question and answers correctly solved Accelerated filers - correct answer a registrant with a worldwide non-affliate market cap between $75 million and $700 million
File 10K 75 days after the fiscal years end (accelerated is 60 days and non-accelerated is 90 days), file 10...
Full Test Series 79
Accelerated filers - correct answer ✔a registrant with a worldwide non-affliate
market cap between $75 million and $700 million
File 10K 75 days after the fiscal years end (accelerated is 60 days and non-
accelerated is 90 days), file 10Q 40 days after the fiscal year ends (like large
accelerated filer while non accelerated filers are are 45 days), all file 8-k 4
business days after the events
Which analysis do public company bidders typically use in assessing a
target's valuation that is not employed by private company bidders? - correct
answer ✔Accretion/Dilution analysis. Public acquirers use acretion/dilution
analysis to measure proforma shares/earnings per shares together with the
synergies added, using available information on existing EPS and shares
outstanding
A securities analyst is assigned the task of calculating the public float of two
companies, A and B. They each have 10 million shares outstanding, and their
stock prices are identical. Company A has one million more shares held by
institutions than Company B. Company B has one million more shares held by
insiders than Company A. What is an accurate conclusion? - correct answer
✔Institutional shares are considered to be similar to public shareholders, so if
B has more insiders ahres than A, A has more public float than A
A GARP investor is screening for acquisition candidates, using a PEG ratio of
1.00 or better as an acceptable level. Company A has a P/E ratio of 12.
Company B has a P/E ratio of 10. Company C has a P/E ratio of 8. Which
metric produces a company that is acceptable? - correct answer ✔The
metric produces an acceptable company that fits GARP has Price / Earning
growth ratio of below 1, so the earning growth should be greater than 12% for
A, 10% for B and 8% for C
, What types of organizations has perpetual life? - correct answer
✔Corporation structure has a perpetual life. C corp and S corp have perpetual
life.
Limited liability company LLC only exists for a stated number of years
Limited partnership dissolves at the death of retirement of a member of
partner
A proxy statement filed in connection with a one-step merger transaction
contains which of the following? - correct answer ✔One-step merger involves
shareholders vote. So the proxy statement filed in connection with a one-step
merger transaction contains:
1. Fairness opinion description of financial analysis by the advisor
2. A copy of the definitive purchase/sale agreement
The Public Offering Price of an IPO is $100 Million. The underwriting spread is
6%, leaving the issuer to receive the remaining $94 Million. When will the
investment community become aware of the pricing of the IPO? - correct
answer ✔Only after the effective date. The offering price is determined within
the final prospectus (Form 424B).
This is when the SEC has determined that the issue has been effective,
shares will be allocated to investors along with price being decided
Price is announced simultaneously in tandem with red herring during the cool-
off period.
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