Corporate Finance Multiple Choice Questions

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Finance → Corporate Finance Multiple Choice Questions from 71 to 75

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71. The difference between the public-offer price and the price paid by the underwriter is called
(A) underpricing
(B) spread
(C) commission
(D) margin

72. The underwriters receive their payments in the shape of
(A) underpricing
(B) spread
(C) commission
(D) margin

73. Rights issues are for
(A) managers
(B) directors
(C) existing shareholders
(D) new shareholders

74. The interest rate earned if a financial asset is held until its maturity is called
(A) term structure
(B) spinning
(C) yield
(D) spread

75. The price of a stock is $100, and it could be $95 or $115 the next year. What is the expected return?
(A) 5%
(B) 6%
(C) 7%
(D) 7.5%

ANSWERS: CORPORATE FINANCE MULTIPLE CHOICE QUESTIONS
71. (B) spread
72. (B) spread
73. (C) existing shareholders
74. (C) yield
75. (A) 5%