Numbers 16-20

Numbers 16-20

Ctrl hs Del 11, which one of the following entities is considered a legal "person"? b. general partnership limited partnersbip d. sole properictorship The NYSE: a has the most saringent listing requirements of any U.S. exchange b. is all electronic and has its base of operations in New York City c. is best described as a centralized dealer market. d. exists solely a primary market. 12. -, l 3. Which one ofthe following best describes the liability a general partner has for the partnership debts? b. liability limited to amount invested in the firm c. liability limited based on peroentage ownership d. unlimited -14. Collateralized Debt Obligations are strictured asset-backed securites tat a. issued by corporations to finance account receivables and in b. split into different risk tranches with senior tranches being the safest cguaranteed by the Govermment d. sold to the investors only interested in mortgage backed securities 15. An agency problem is most apt to exist in which one of the following sinuations a an employee asks foe a raise and is denied b. a management decision increases the market value of the firm's stock c. a board member resigns for personal reasons d.afirm's board decides to increase management bonuses and frego the normal stock dividend 16. The credit default swap (CDS) spreadipremium) on ABC dorp is 200 basis points(-2S)What "nual papmet does a buyer of credit protection have to pay to lesure S1 milion of ABC Corp bonds? a. $200,000. b. $20,000 c. $10,000 d. nothing. 17. (16 continued) In the event of default, the recovery rate is S0%. If investors are risk-neutral, what is the probability of default per year? Hint Actuarily fair premium probability of default (1-Recovery Rate). a. 1% b. 10% c.4%. d, 8% Who has the ultimate control over a corporation? a shareholders b. chief executive officer e.chairman of the board -18. d.board of directors Which one of the following is a primary market transaction? a. Juliette, the president of ABC, sells some of her shares in ABC on the NYSE b. ABC offers newly issued shares to the public e. Tom instructs his beoker to sell all of his shares in ABC, Inc. d. Mary gifts shares of ABC stock to her son 19. 20. Public offerings of both debt and equity securities are regulated by the a. Securities and Exchange Commission. b. U.S. Banking and Financial Services Agency e U.S. Treasuary Department d. Federal Reserve