10 finance questions- need answers in an hour please do not admit if you cant.

1.All of the following statements about stand-by (firm commitment) underwriting are true EXCEPT:

Select one:

A. The investment banker guarantees the issuer a fixed amount of money from the share sale.

B. The investment banker actually buys the shares from the company.

C. The issuer bears the risk that the resale price might be lower than the price the underwriter pays.

D. The underwriter bears the risk that the resale price might be lower than the price the underwriter pays.

2. BBB Ltd issues an IPO. The company's investment bank demands a spread of 5 per cent of theoffer price, which is set at $4 per share. 6 million shares are issued. What are the proceeds for the issuer (in millions of dollars to the nearest three decimal places; dont show $ sign or commas eg 18.404)?

3. All of the following are costs of an IPO EXCEPT:

Select one:

A. Liquidity.

B. Underwriting spread.

C. Out-of-Pocket expenses.

D. Underpricing.

4. When ABC Company went public in September 2008, the offer price was $4.42 per share and the closing price at the end of the first day was $6.92. The company issued 5 million shares. What was the loss to the company due to under-pricing? (in millions of dollars to the nearest two decimal places; dont use $ sign eg $4.5766 million is 4.58)

5. ABC Ltd issues a $16 million IPO providing proceeds to ABC of $3.6 per share, from an offer price to the public of $4 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $392,000. The company's share price increases 14 per cent on the first day.What is the underwriting cost? (in millions of dollars to the nearest three decimal places; dont use the $ sign eg 7.897)

6. ABC Airways is introducing a new fleet of planes and needs to raise $$16.9911 million (net of underwriting cost) to fund an expansion. If the offer price is $3 and the underwriters require a 7 per cent spread on the transaction, how many shares does the company need to issue (in millions to three decimal places)?(Hint:required amount/(1-spread) = issue amount)

7. The practice of funding a project or venture by raising monetary contributions from a large number of people using the internet and social media is known as:

8. Tactics that venture capitalists use to reduce the risk of their investment include:

Select one:

A. funding the ventures in stages, requiring entrepreneurs to make no personal investments, syndicating investments, and maintaining in-depth knowledge about the industry in which they specialise.

B. funding the ventures completely in the beginning, requiring entrepreneurs to make personal investments, syndicating investments, and maintaining in-depth knowledge about the industry in which they specialise.

C. funding the ventures in stages, requiring entrepreneurs to make personal investments, syndicating investments, and maintaining in-depth knowledge about the industry in which they specialise.

D. None of the above.

9. ABC Ltd issues a $32 million IPO providing proceeds to ABC of $3.6 per share, from an offer price to the public of $4 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $356,000. The company's share price increases 8 per cent on the first day. What is the underpricing cost to the company of issuing the securities? (in millions of dollars to the nearest three decimal places; dont use the $ sign eg 7.897)?

10. Which one of the following statements is NOT true?

Select one:

A. For many smaller companies and companies of lower credit standing that have limited access, or no access, to the public markets, the cheapest source of external funding are often private markets.

B. Bootstrapping and venture capital financing are not part of the private market.

C. Bootstrapping and venture capital financing are part of the private market.

D. Many private companies that are owned by entrepreneurs, families, or family foundations and are sizeable companies of high credit quality prefer to sell their securities in the private markets.