1. Why do the good people on Wall Street and Bay Street refer to some investors as the "smart money" and other investors as the "dumb money"? Who are (represents) the "smart money"? Who are (represents) the "dumb money"? (5 Marks) 2. A company wants to go public. What are the standard qualifiers for a company to consider itself in a good position to go public? (5 Marks). 3. In order for a company to do an IPO what entities and/or actions must they have to support this financial endeavor? Explain and elaborate. HINT: Don't forget to speak about the marketing piece. (5 Marks) 4. John Smith wants to buy 1,000 shares in McDonalds. To do this he must submit a . (1 Mark). 5. Jane Doe wants to sell 500 shares in McDonalds. To do this she must submit an . (1 Mark) 6. You own shares in XYZ Company LTD. The forecast for future earnings in terms of dividends is as follows. Year 1($2.00), Year 2 (\$2.10), Year 3 (\$2.50), Year 4($2.60). You require a 12\% ROI. You also plan to sell your shares at the end of Year 4 for $20 per unit. How much is one (1) unit of stock worth today? (10 Marks) 7. If you purchased bonds in 2020 that are paying a 3% coupon rate per annum you would want to exercise your option as quickly as possible. (2 Marks) 8. Should long term assets be purchased with short term debt? Why or why not? Explain