ASAP! PLEASE ANSWER ALL QUESTIONS FOR A THUMBS UP RATING, THANK YOU!

1) Under a green shoe provision, insiders are prohibited from selling their existing shares for a specified period of time. Insiders typically include the private investors and key employees.

True

False

2) 25,000 new shares of preferred stock are to be issued in a down round priced at $1.25 per share. Before the financing round, there are 100,000 shares of preferred stock outstanding with an original conversion price of $2.50. The original investors have weighted average anti-dilution protection. Using the Conversion Price Formula, what is the conversion price of the original preferred stock after the financing round?

		$2.25/share
		$2.42/share
		$2.02/share
		$1.25/share

3) In general, if the volatility of a stock decreases, the value of a call option increases.

True

False

4) A security that offers the issuer the option of paying dividends in cash or by issuing additional amounts of the preferred security is known as participating preferred stock.

True

False