Series 79 - Questions and Answers
A stock market investor focuses on buying companies that are growing their earnings steadily, at a rate that exceeds the stock market as a whole. In addition, the investor wants to see that these stocks are selling at price/earnings ratios below the market average...
A stock market investor focuses on buying companies that are growing their earnings
steadily, at a rate that exceeds the stock market as a whole. In addition, the investor
wants to see that these stocks are selling at price/earnings ratios below the market
average. This strategy is known as - answer GARP
For funding portals, due diligence is - answer optional
XYZ Company goes public at a public offering price of $31. Several days later, the stock
has increased to $43. If the underwriters decides to exercise the greenshoe clause,
what price will investors pay for those shares? - answer $31
Schedule TO must be filed by an entity that expects to own more than what percentage
of the target company's securities? - answer 5%
A company buys back 100,000 shares of common stock for cash at a cost of $50 per
share. At the same time, the company raises cash by selling $20mm in bonds with a
coupon of 9%. What is the impact on enterprise value of these two transactions? -
answer None
What is the name of the SEC rule that requires a tender offer to be made available to
every shareholder of the same class of securities on equal terms? - answer All
holders
The Sarbanes-Oxley Act requires public accounting firms to describe the scope of their
testing of companies' internal controls and procedures. This description and findings
from testing must be included in the - answer Audit report
The largest portion of the underwriting spread is the - answer Selling concession
For a public company, a change in which of the following key advisors or vendors will
trigger the requirement to file Form 8-K on a timely basis? - answer Certifying
Accountant
Companies headquartered in more than 50 foreign countries list their common stocks
for sale in the U.S. through American Depository Receipts (ADR's). Which country is not
among them? - answer Canada
A hedge fund borrows money in Japanese yen at an interest rate of .5% and uses the
funds to invest in U.S. corporate bonds that yield 5.2%. The combined position is called
a - answer Carry trade
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