羅斯公司理財題庫全集

本文格式為Word版，下載可任意編輯——羅斯公司理財題庫全集Chapter20-IssuingSecuritiestothePublic

21.Underthe_____method,theunderwriterbuysthesecuritiesforlessthantheofferingpriceandacceptstheriskofnotsellingtheissue,whileunderthe_____method,theunderwriterdoesnotpurchasethesharesbutmerelyactsasanagent.A.bestefforts;firmcommitmentB.firmcommitment;besteffortsC.generalcashoffer;besteffortsD.competitiveoffer;negotiatedofferE.seasoned;unseasoned

22.ProfessorJayRitterfoundbest-effortsofferingsare:

A.reservedforthepremiercustomersbecausetheydeserve'best-efforts'.B.usedmostoftenwithseasonedequityissues.C.usedwithsmallIPOissues.

D.attractivebecauseofpricestability.E.Noneoftheabove.

23.Empiricalevidencesuggeststhatnewequityissuesaregenerally:A.pricedefficientlybythemarket.

B.overpricedbyinvestorexcitementconcerninganewissue.C.overpricedresultingfromSECregulation.

D.underpriced,inpart,tocounteractthewinner'scurse.E.underpricedresultingfromSECregulation.

24.Thediagonallistingofinvestmentbankersontombstoneadvertisementsreflectstheir____relativetotheotherinvestmentbankerslistedbelow.A.prestige

B.abilitytomanagesellingsyndicatesC.roleasafirmcommitmentbuyerD.roleasabesteffortssellerE.Noneoftheabove

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Chapter20-IssuingSecuritiestothePublic

25.Thereputationalcapitalofinvestmentbankersisbasedontheirrolesasintermediarieswithmorein-depthknowledgeoftheissuer.Investmentbankersmaintaintheirreputationby:A.certifyingtheissue.

B.monitoringtheissuingfirm'smanagementandperformance.C.pricingissuesfairly.D.Alloftheabove.E.Noneoftheabove.

26.Thekeydifferencebetweenanegotiatedofferandacompetitiveofferisthat:

A.theunderwriterscannotsetthespreadinanegotiatedbidbutcaninacompetitiveoffer.B.theissuingfirmcanofferitssecuritiestothehighestbidderinacompetitivebidbutinanegotiatedbidonlyoneinvestmentbankerisused.

C.theissuingfirmworkstheunderwriterforthebestspreadinanegotiatedbidwhichwillbelessthanthatavailableinacompetitiveoffer.

D.theunderwriterwillnotdoafullinvestigationinanegotiatedbidbecausethecompanyisattheirmercy,whileinacompetitivebidtheunderwritermustbeextradiligent.E.Noneoftheabove.

27.Theofferingpriceissettomakeanissueattractivetothemarketandprovideagoodpricetotheissuer.Whichofthefollowingis/aretrue?

A.EmpiricalstudiesbyRitterhaveshownthattheaveragefirmcommitmentshavehada17.8%underpricingonthefirstdayoftrading.

B.Empiricalstudieshaveshownthatbesteffortssaleshaveunderpricingonthefirstdayoftrading.

C.Someissueswhichrosedramaticallyonthefirstdayoftradingwereviewedassuccessfullypricedbytheunderwriterbecauseithelpedbuildalong-terminvestmentbase.D.Alloftheabove.E.Noneoftheabove.

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Chapter20-IssuingSecuritiestothePublic

28.Empiricalevidencesuggeststhatuponannouncementofanewequityissue,currentstockpricesgenerally:

A.drop,perhapsbecausethenewissuereflectsmanagement'sviewthatcommonstockiscurrentlyovervalued.

B.remainaboutthesamesinceanefficientmarketanticipatesanewequityissue.C.increase,perhapsbecausetheissuesareassociatedwithpositiveNPVprojects.D.increase,becausethemarketsupplyisalwayslessthandemand.E.increase,becauseunderwritersexercisetheirgreenshoeoption.

29.Underpricingcanpossiblybeexplainedby:A.oversubscriptionofanissue.B.strongdemandbyinvestors.C.undersubscriptionofanissue.D.BothBandC.E.BothAandB.

30.Debtcapacityisoftengivenasareasonforthevalueofthestockfallingwhenequityisissued.Thereasonforthisis:

A.thehighissuecostsofadebtofferingmustbepaidbytheshareholders.B.theprioritypositionoftheequityislowered.

C.managementhasinformationthattheprobabilityofdefaulthasrisen,limitingthedebtcapacityandcausingthefirmtoraiseequitycapital.D.Alloftheabove.E.Noneoftheabove

31.AstudybyLee,Lockhead,Ritter,andZhaothatexaminedtheunderwritingdiscountandotherdirectcostsofgoingpublicwithadebtorequityoffering,found:A.thedirectexpensesarehigherforequitythandebtofferings.B.substantialeconomiesofscaleareprevalent.

C.underpricing,onaverage,issimilarinmagnitudetototaldirectexpenses.D.Alloftheabove.E.Noneoftheabove.

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Chapter20-IssuingSecuritiestothePublic

32.Thesixcomponentsthatmakeupthetotalcostsofnewissuesare:

A.thespread;otherdirectexpensessuchasfilingfees;indirectexpensessuchasmanagementtime;economiesofscale;abnormalreturnsandtheGreenShoeoption.

B.thediscount;otherdirectexpensessuchasfilingfees;indirectexpensessuchasmanagementtime;duediligencecosts;abnormalreturnsandtheGreenShoeoption.

C.thespread;otherdirectexpensessuchasfilingfees;indirectexpensessuchasmanagementtime;abnormalreturns;underpricingandtheGreenShoeoption.

D.thespread;otherdirectexpensessuchasfilingfees;economiesofscale;duediligencecosts;abnormalreturnsandunderpricing.E.Noneoftheabove.

33.Incomparisontodebtissuanceexpenses,thetotaldirectcostsofequityissuesare:A.considerablyless.B.aboutthesame.C.meaningless.

D.considerablygreater.E.Noneoftheabove.

34.Todeterminethevalueofarightsoffering,thestockholderneedstoknowthefollowingtwopiecesofinformationinadditiontothecurrentstockprice:

A.thesubscriptionpriceandthenumberofrightsneededtoacquireanewshare.

B.theamountofnewequitytoberaisedandthenumberofrightsneededtoacquireanewshare.C.theamountofnewequitytoberaisedandstandbyfee.D.thedetachmentdateandthesubscriptionprice.E.Noneoftheabove.

35.Assumingeverythingelseisconstant,whenastockgoesex-rightsitspriceshould:A.decreasesincethestockholderislosinganoption.

B.increasesincethecorporationnolongerhastherighttoforcethestockholdertoconvert.C.remainthesamesinceanefficientmarketwouldanticipatethischange.

D.moveupordowndependingonwhetherasmallinvestorwantedtoexercisehis/hisrights.E.Noneoftheabove.

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Chapter20-IssuingSecuritiestothePublic

36.Ifashareholderorinvestorwantstoacquirenewstockunderarightsplanttheymust:A.acquirenewstockinthemarkettogetacontrollingfractionofsharestobeeligibleforrights.B.simplypayaregistrationfeeandturninthesubscriptionprice.

C.acquirethecorrectrightspersharedesired,thenturntherightsandthetotalsubscriptionpriceintothesubscriptionagent.

D.acquirethecorrectrightsandwaitforthecompanytosendyouthestock.E.calltheirbrokerandsellsomeCBOEoptionstomakeanymoney.

37.Whichofthefollowingstatementsistrue?

A.Thesubscriptionpriceisgenerallyabovetheoldstockprice.B.Thesubscriptionpriceisgenerallyabovetheex-rightsprice.C.Thesubscriptionpriceisgenerallybelowthe