Which of the following is true of the underwriting of IPOs performed by investment banks?
| a. |
The investment bank is prohibited from profiting from the underwriting. |
|
| b. |
The investment bank is not responsible for reselling the purchased shares in the market. |
|
| c. |
The investment bank commits to buy stock from the issuing company at a fixed price. |
|
| d. |
The investment bank resells the underwritten stock in the market at a discounted price. |
Stockholders have preemptive rights because:
| a. |
are written into the companies rules of operation (its charter, articles, or bylaws). |
|
| b. |
preemptive rights prevent disproportional ownership. |
|
| c. |
are required by law. |
|
| d. |
preemptive rights come with every stock purchase. |
Which of the following is a reason why lenders insist on bond indentures?
| a. |
To ensure that bond-issuing companies prefer debt financing to equity financing |
|
| b. |
To ensure that lenders of rights are comparable to the rights of stockholders |
|
| c. |
To make the bonds easy to sell in secondary markets |
|
| d. |
To ensure that bond-issuing companies do not accept risky projects |
Bond ratings assess the:
| a. |
liquidity risk of companies that issue bonds. |
|
| b. |
maturity risk of individual bonds. |
|
| c. |
the overall risk (DR+LR+MR) of companies that issue bonds. |
|
| d. |
default risk of individual bonds. |
Which class of investors do not have claims on the income and assets of the firm prior to preferred shareholders?
| a. |
Bondholders |
|
| b. |
Common shareholders |
|
| c. |
Creditors |
|
| d. |
Lenders such as banks |
In: Accounting
The following data give the prices of seven textbooks randomly selected from a university bookstore.
$86 | $174 | $109 | $119 | $59 | $155 | $145 |
a.Find the mean for these data. Calculate the deviations of the data values from the mean. Is the sum of these deviations zero?
Mean =
Deviation from the mean for $174 =
Sum of these deviations =
b.Calculate the range, variance, and standard deviation. [Round your answers to 2 decimal places.]
Range =
Variance =
Standard deviation =
In: Statistics and Probability
In: Statistics and Probability
The following information is available from the audited financial statements of Molson Coors Brewing Company and Big Rock Breweries Income Trust for their recent year ends.
Molson/Coors
(in millions of US dollars) Big Rock Breweries
(in thousands of Cdn dollars)
Net Sales $ 5,844 $ 38,701
Profit $ 373 $ 8,380
Total assets, ending $ 11,603 $ 42,170
Total assets, beginning $ 11,799 $ 41,786
Instructions:
a) Calculate both companies' asset turnover and return
on assets ratios.
b) Compare the companies' effectiveness in using their assets to
produce sales and profit.
In: Accounting
A battery company claims that its batteries last an average of 100 hours under normal use. After several complaints that the batteries do not last this long, an independent testing laboratory decided to test the company’s claim with a random sample of 42 batteries. The data from the 42 batteries appeared to be unimodal and symmetric with a mean 97 hours and a standard deviation of 12 hours. What sample size would allow us to increase our confidence level to 95% while reducing the margin of error to only 3 hours? Round up to the nearest whole number.
In: Statistics and Probability
1. Are the following capital budgeting or financing decisions?
A. Intel decides to spend $1 billion to develop a new microprocessor.
B. Avon spends $200 million to launch a new range of cosmetics in US markets.
C. Pfizer issues new shares to buy a small biotech company.
D. Toyota borrows 350 million yen from Bank of Tokyo.
2. Would the following activities increase or decrease the firm’s cash balance?
A. Inventories are increased.
B. Accounts payable are decreased.
C. Additional common stock issued.
D. New equipment is purchased.
In: Finance
In: Economics
Compute and Interpret Coverage, Liquidity and Solvency Ratios
Selected balance sheet and income statement information from CVS Health Corp. for 2014 through 2016 follows ($ millions).
| Total Current Assets | Total Current Liabilities | EBIT (Operating income) | Interest Expense, Gross | Total Liabilities | Equity | |
|---|---|---|---|---|---|---|
| 2016 | $33,930 | $26,250 | $10,504 | $1,058 | $57,628 | $39,722 |
| 2015 | 32,046 | 23,169 | 9,620 | 838 | 55,234 | 40,091 |
| 2014 | 28,871 | 19,027 | 8,965 | 600 | 36,224 | 40,851 |
a. Compute times interest earned ratio for each year and discuss any trends for each. Round answers to one decimal place.
| Year | TIE Ratio |
|---|---|
| 2016 | Answer |
| 2015 | Answer |
| 2014 | Answer |
Based on your computations above, select the most appropriate answer.
Times interest earned has steadily increased since 2014.
Times interest earned has steadily decreased since 2014.
Times interest earned has remained the same since 2014.
Times interest earned increased in 2015 but then decreased in 2016.
1.00 points out of 1.00
b. Compute the current ratio for each year and discuss any trend in
liquidity. Round answers to one decimal place.
| Year | Current Ratio |
|---|---|
| 2016 | Answer |
| 2015 | Answer |
| 2014 | Answer |
Do you believe the company is sufficiently liquid? Explain.
CVS’s current ratio has increased over the past three years and is greater than 1, indicating CVS is liquid.
CVS’s current ratio has decreased over the past three years and it is currently less than 1 indicating CVS is not liquid.
CVS’s current ratio has increased over the past three years, however, it remains less than 1 indicating CVS is not liquid.
CVS’s current ratio has decreased over the past three years, however, it is greater than 1 indicating CVS is liquid.
1.00 points out of 1.00
c. Compute the total liabilities-to-equity ratio for each year and discuss any trends for each.
Round answers to one decimal place.
| Year | Liabilities to Equity |
|---|---|
| 2016 | Answer |
| 2015 | Answer |
| 2014 | Answer |
In: Accounting
The following data set shows the entrance exam score (Verbal GMAT) for each of eight MBA students along with his or her grade point average (GPA) upon graduation. Calculate the slope and y-intercept for the linear regression equation for these data.
Calculate the slope and y-intercept for the linear regression equation for these data
GMAT GPA
310 3.6
300 2.9
260 3.1
290 3.1
340 3.9
270 3.1
290 3.7
310 3.1
In: Statistics and Probability
********NEEDS TO BE IN EASSAY TYPE FORMAT AND NO MORE THAN 500 WORDS !!! i will give a thumbs up... also no plagerism we submit this through a database!!!!********* Develop an essay response of no more than 500 words to the following: (1) Concept of balancing the "me" with the "we;" (2) Ways self-leadership can be applied to personal problems, and thus personal development; (3) Why should a MBA student be concerned with these topics? (4) How does the outcome of your self-assessment relate to these topics?
In: Psychology