H Partners and Six Flags - Study Questions

Upvote will be given. Write the complete solutions legibly. The encircled letter is the correct answer. Solve it manually. Answer 27, 28 and 29

Which of the following statements is CORRECT? O a. The NYSE is an example of an over-the-counter market. O b. Only institutions, and not individuals, can engage in derivative market transactions. O c. If you purchase 100 shares of Disney stock from your brother-in-law, this is an example of a primary market transaction. O d. As they are generally defined, money market transactions involve debt securities with maturities of less than one year. e. If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.

If you had the job of deciding to invest $1 million in a US Treasury bond or $1 million in your chosen company's bond (assume in this case that the company has a bond to invest in), which would you choose and WHY? Company is Volkswagen Group ticker symbol VWAPY.

General Motors invests in securities of other companies. Access GM’s 2019 10-K (which includes financial statements) using EDGAR at www.sec.gov. Required: What is the amount of any available-for-sale investment securities reported in the balance sheet? Is there an amount you can’t find in the balance sheet but that you know must be there? How are unrealized gains or losses on available-for-sale investments reported: in net income or OCI? In what note does GM indicate that policy? Are any investments reported by the equity method? In what note does GM provide an in-depth discussion of them? What amounts from equity method investments are reported in the 2019 income statement?

You are an analyst working for a major investment bank, and you have beenapproached by ByteDance Ltd, a Chinese internet technology company, tobuy a 5% equity share in the firm. Your manager has asked you to provideresearch into the company and its valuation. As with any privately ownedcompanies, the valuation is tricky, as ByteDance is not bound by the samedisclosure requirements as a publicly listed company.1) Critically analyse the difficulties in the valuation of private companiesand apply your findings in the case of ByteDance.2) Critically evaluate the political risks of this investment in light of therecent clampdown of the Chinese authorities on local tech companies.

The _____ contains the so-called Volcker Rule, which prohibits depository banks from proprietary trading. a. Sarbanes-Oxley Act of 2002  b. Maloney Act of 1938  c. Securities Investor Protection Act of 1970  d. Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010  e. Securities Act of 1933

ETHICS (Fair Value) Addison Manufacturing holds a large portfolio of debt securities as an investment. The fair value of the portfolio is greater than its original cost, even though some debt securities have decreased in value. Sam Beresford, the financial vice president, and Angie Nielson, the controller, are near year-end in the process of classifying for the first time this securities portfolio in accordance with GAAP. Beresford wants to classify those securities that have increased in value during the period astrading securities in order to increase net income this year. He wants to classify all the securities that have decreased in value as held-to-maturity.Nielson disagrees. She wants to classify those debt securities that have decreased in value as trading securities and those that have increased in value as held-to-maturity. She contends that the company is having a good earnings year and that recognizing the losses will help to smooth the income this year. As a result, the…

Which of the following statements is CORRECT? A. Capital market instruments include both mortgages and U.S. Treasury bonds.   B. An example of a primary market transaction would be your uncle transferring 100 shares of Wal-Mart stock to you as a birthday gift.   C. The NYSE does not exist as a physical location. Rather it represents a loose collection of dealers who trade stock electronically.   D. While the two frequently perform similar functions, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise large blocks of capital from investors.

Which of the following statements is NOT true of PIPE transactions? In a PIPE transaction, investors purchase securities (equity or debt) directly from a publicly traded company in a private placement. PIPE transaction gives issuers faster access to capital. The securities are virtually always sold to the investors at a discount to the price at which they would sell in the public markets. PIPE transactions are registered with the SEC.

A client that has never before invested in securities recently acquired more than a million peso in cash from the sale of real estate no longer used in operations. The president intends to invest this money in marketable securities until such time as the opportunity arises for advantageous acquisition of a new plant site. He asks you to enumerate the principal factors you would recommend to create strong internal control over marketable securities. What would you answer?

Ronaldo is the CFO of Manchester, Inc. The company currently has an investment portfolio that includes a variety of both debt and equity securities. Ronaldo’s bonus is based on Manchester meeting certain earnings projections. How can Ronaldo take advantage of the classification of investment securities to improve his chances of receiving his bonus? Discuss the ethical and legal implications.

Internal Control Questionnaire for Equity Investments. Cassandra Corporation, a manufacturing company, periodically invests large sums in marketable equity securities. The investment committee of the board of directors established the investment policy. The treasurer is responsible for carrying out the investment committee’s directives. All securities are stored in a bank safe deposit vault. Your internal control questionnaire with respect to Cassandra’s investments in equity securities contains the following three questions:1. Is investment policy established by the investment committee of the board of directors?2. Is the treasurer solely responsible for carrying out the investment committee’s directive?3. Are all securities stored in a bank safe deposit vault?Required:In addition to these three questions, what questions should your internal control questionnaire include with respect to the company’s investment in marketable equity securities?(Hint: Prepare questions to cover…

MC Qu. 41-19 Underwrites are investment banking... Underwrites are investment banking firms that do which of the following? Multiple Choice Underwriters resell securities before the prospectus has been filed with and approved by the SEC. Underwriters determine whether the stock is valid and may be offered for sale to the general public. Underwriters purchase securities from an issuing corporation with the intent to sell them to brokerage houses, which them sell them to the public. Underwriters buy bonds from the issuing corporation before the issuing corporation sells its securities to the general public. 27 m A 2 Second create at least three different recoarch que rave

15 A certificate of deposit (CD) is issued when Lo-Risk Invest LLC deposits funds with Money Bank on the bank’s promise to repay the funds, with interest, on a certain date. Lo-Risk cannot withdraw the funds before the date of maturity because a. a CD is not a three-party instrument. b. the bank is both the issuer of the instrument and the drawee. c. a CD cannot be sold or negotiated to a third party before maturity. d. a CD is a time deposit.   1)Donut Shop(16 signs a promissory note for $50,000 in favor of Enterprise Lending Inc. The note includes an acceleration clause. This note is a. nonnegotiable, because the maker can move up the payment date. b. negotiable. c. nonnegotiable, because payment can be demanded early if a specified event occurs. d. nonnegotiable, because the maturity may be extended into the future.   2). Bon signs a promissory note for $12,500 (18)in favor of Car Loans Inc. The note specifies payment by a certain date and includes an option to pay early. This note…

Which of the following statements is NOT true? About half of all corporate debt is sold through the private placement market. Private placement occurs when a firm sells unregistered securities directly to investors such as insurance companies, commercial banks, or wealthy individuals. Investment banks and money center banks often assist firms with private placements. In private placements, there are no restrictions on the resale of the securities.

Assess the regulatory environment faced by brokerages and investment banking firms. Do you consider this environment to be highly regulated, moderately regulated or unregulated. Justify your response.Compare and contrast credit risk with liquidity risk.Describe the size, structure and composition of the mutual fund industry. Do you consider these characteristics as having a positive or negative impact on investors ? Why ?An investment bank pays $ 23.00 for 4 million shares of JC Co., and then resells them for $ 25 per share. How much money does JC receive? What is the profit to the investment bank ?An investment bank pays $ 20.50 per share for 3 million shares of X. It then sells these shares to the public for $ 22.50 per share. How much money does X receive ? What is the profit to the investment bank ? What is the stock price of X ?A mutual fund owns 500 shares of X currently trading at $ 12, and 300 shares of Y, currently trading at $ 24. The fund has 900 shares outstanding.What is…

Pls help ASAP

Which of the following statements about CHIPS (Clearing House Interbank Payments System) is NOT true?    CHIPS is a United States-based system for large-value domestic and international payments.   CHIPS is used primarily for international fund transfers.   CHIPS is one of the primary networks for high-value transactions in the U.S.   CHIPS processes a majority of its transactions in cryptocurrencies.

Lady Gaga Co. recently made an investment in the bonds issued by Chili Peppers Inc. Lady Gaga’s business model for this investment is to profit from trading in response to changes in market interest rates. How should this investment be classified by Lady Gaga? Explain.

If an investment bank offers both underwriting/distribution functions and investment advisory or management functions, which situation would be acceptable under U.S. Securities and Exchange regulations and ethics guidelines with regard to material non-public information (MNPI)?   Allowing MNPI acquired in the sell side of the business to influence the recommendations made by the buy side of the business. Trading of personal securities based on MNPI available only to the buy side of the business and not to the sell side due to a "wall." "Bringing someone over the wall" to provide value to underwriting, who does not comment on MNPI until it has been made public. Acquiring MNPI in the buy side of the business and disseminating it to the sell side of the business.

With proper explanation please

Assume the SEC approved the registration statement for a new securities issue this morning. Which one of the following statements must be true about this issue?   Multiple Choice   The red herrings can finally be distributed as their distribution was awaiting SEC approval.   The waiting period started when the approval was received this morning.   The SEC believes the issue will be a profitable investment for all purchases made at the offer price.   The issuer is following all the required rules and regulations in regard to this issue.   The final prospectuses have all been delivered or the SEC would not have approved the issue.

equity/debt an IOU or promise to pay from/a claim to partial ownership in Clinton and the othwr stockholders/the bondholders

Which of the following statements regarding securities firms and investment banks are not true? OA One of the major functions of investment banks is to originate and underwrite new securities issued by industrial firms or governments OB. The merger activities in secruities firms and investment banks have increased in recent years due to the Financial Services Modernization Act of 1999 OC. Initial public offerings are first time security issuances of firms whose securities have not previously traded in any security exchanges. OD. In a public new security offering, investment banks place the newly issued securities with a selected number of private, usually wealthy, investors.