Finance → Corporate Finance Multiple Choice Test Questions from 76 to 80
76. The price of a stock is $100, and there are 40% chances that it would be $95 and 60% chances that it would be $115 the next year. What is the expected return?
77. A company’s agreement with the underwriter include
(B) greenshoe option
(C) A and B
(D) whiteshoe option
78. The long-run returns of Initial Public Offerings (IPOs) tend to __________ the market.
(D) none of these
79. Spread is __________ for IPOs.
80. The value of a financial derivative depends on the
(C) forward interest rate
ANSWERS: CORPORATE FINANCE MULTIPLE CHOICE QUESTIONS TEST
76. (C) 7%
77. (C) A and B
78. (A) underperform
79. (A) highest
80. (D) underlying