Question

The largest risk of corporate bonds is: A) Interest rate risk B) Default risk C) Business risk D) Liquidity risk None of the above V Pro forma financial statements can best be described as financial statements: A) expressed in a foreign currency. B) where the assets are expressed as a percentage of total assets and costs are expressed as a percentage of sales. C) showing projected values for future time periods. D) expressed in real dollars, given a stated base year. E) where all accounts are expressed as a percentage of last year's values. 8. Which one of the following should not be included in the analysis of a new product? A) Increase in accounts payable for inventory purchases of the new product B) Reduction in sales for a current product once the new product is introduced C) Market value of a machine owned by the firm which will be used to produce the new product D) Money already spent for research and development of the new product E) Increase in accounts receivable needed to finance sales of the new product 9. Which one of the following types of securities has the highest priority in a bankruptcy proceeding? A) Junior debt B) Senior debt C) Common stock D) Preferred stock E) Subordinated debt 10. There are four open positions on the board of directors of QQQ Enterprises. The company has 340,000 shares of stock outstanding. Each share is entitled to one vote. How many shares of stock must you ow to guarantee your personal election to the board of directors if the firm uses cumulative voting! 68,001 shares B) 85,001 shares 380,TL = 63,201 C) 170,001 shares 340,000 berts D 113,334 shares E) 60,001 shares 7 spunts In which of the following institutions do dealers carry out transactions?

Answer 1

8:7 financial Statements can best be pro forma described as financial Statements Answer option future c p showing projected values for - protected values time periods it depicts projected Statements based on or forecast financial assumptions about the future Answer - option -D money already spent should not be included în analysis of as it as a Sunk cost le cost which has already spent and decision making should not be effected due to such costs. Q:9 Answer - option - B Senioor Senior debt has highest - eruptey proceedings debt priority in bank-

Q :10 Ans : the correct option for the 68001 answer shares is option - A pc. Since formulae form uses used as cumulative voting, nes total number of directors = 4 shares needed = 1 X SVIVW 340,000 4+ 1 = I x 340,000 + 68004 68000 + 1 = 68001 shares