A corporation that elects to pass corporate income and losses to its shareholders is known as a(n) correct answers S Corporation
Asset Backed Securities could be backed by all of the following EXCEPT correct answers corporate equipment
In a Direct Participation Program, which of the following...
Series 79 || with Accurate Answers 100%.
A corporation that elects to pass corporate income and losses to its shareholders is known as a(n)
correct answers S Corporation
Asset Backed Securities could be backed by all of the following EXCEPT correct answers
corporate equipment
In a Direct Participation Program, which of the following types of compensation paid to brokers
are considered underwriter's compensation? correct answers I. Sales commissions
IV. Continuing fees and trail commissions
When are management presentations typically held within the context of an M&A process?
correct answers At the start of the second round once bidders have been pared down
All of the following are companies for whom the P/E ratio might be irrelevant EXCEPT correct
answers Highly profitable company
Under Regulation M Rule 101, "actively traded securities" are correct answers Not subject to a
restricted trading period (actively traded securities, or those with an ADTV value of at least $1
million where the issuer's common equity securities have a public float value of at least $150
million)
Over a period of three weeks, an issuer and underwriters discuss and negotiate terms of the
offering before a registration statement is filed with the SEC. This period of time is known as the
correct answers Pre-filing period
Brokers Dealer A and Broker Dealer B are co-bookrunners on a debt offering for XYZ Co, Inc.
BD A has a 30% allocation, BD B has a 20% allocation, and other underwriters share the
remainder. During pricing negotiations between the co-bookrunners and ABC, the deal is
expected to raise between $400 million and $900 million of debt at a rate of UST +80. The deal
ends up being priced at $700 million. ABC is disappointed that the final pricing was below the
top end of the range. What could the underwriters have done differently to price the deal at $900
million. correct answers Change the terms of the debt offering during pricing talks (meaning
issue the bonds at a higher interest rate -- this would increase demand more than including more
banks in the underwriting syndicate)
EBIT is often the same as which of the following financial statistics? correct answers Operating
income
Which of the following statements regarding preferred stock are TRUE?
I. Like common, preferred shares generally have voting rights
II. Unlike common, preferred shares generally do not have voting rights
III. Preferred shares typically have greater appreciation potential than common
IV. Preferred shares typically have less appreciation potential than common correct answers II
and IV
, An underwriter posts a notice on its website that constitutes an offer for an upcoming deal. Is this
offer considered to be a prospectus? correct answers Yes, because it falls under the definition of
"graphic communication"
Which of the following are sub-investment grade credit ratings?
I. BB+
II. BBB-
III. B1
IV. Baa3 correct answers I and III
NewPublicCo raises capital by selling shares to the public at $58.00 per share. The spread is
equal to 6% of the total proceeds. What would be a reasonable estimate of the manager's fee for
this transaction? correct answers $0.70 (manager and underwriter fees are usually both 20% of
the gross spread)
A company has 1,200,000 Shares Outstanding, which are trading at $8.50. Its latest year Sales
were $8,500,000 and latest year Net Income was $950,000. What is the company's P/E ratio?
correct answers 10.74×
Which of the following is typically addressed in the indemnification provision of a definitive
agreement for a private company seller? correct answers The seller provides indemnity to the
buyer for environmental liabilities
All of the following company materials are provided by the company to its sell-side adviser so
they can perform upfront due diligence on the target EXCEPT correct answers CIM
Which of the following are acceptable options for delivery of Firm Element education?
I. Computer-based training modules prepared by outside vendors
II. Face-to-face training delivered by the firm's compliance department to all registered
representatives
III. Pre-recorded web conferences presented by high level product experts within the firm correct
answers I, II, and III
All of the following investors would be considered Qualified Institutional Buyers EXCEPT
correct answers An individual investor with a securities portfolio of $75 million
All of the following documents are used in the first round of an auction process EXCEPT a(n)
correct answers Definitive agreement
For book-building purposes, which SEC forms are used to track transactions by corporate
insiders? correct answers Forms 3, 4 and 5
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