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Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed,

Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above.

  1. Briefly explain the securitization process and include at least one reason why a bank would consider using this.
  2. Briefly compare and contrast a collateralized mortgage obligation with a collateralized debt obligation.
  3. Provide at least two reasons why blame for the credit crisis is a challenge to assign to one particular group alone.
  4. Provide at least one reason why the government felt compelled to pass the Troubled Asset Relief Program (TARP). What is your conclusion regarding the effectiveness of this?
  5. Briefly identify one key component of the Financial Reform Act and why you think it may or may not be effective.
  6. Identify two reasons why an investor would prefer common stock to preferred stock.
  7. What is book building and does it benefit investors or the issuing corporation, in your opinion?
  8. What benefit do investors realize as a result of an extended trading session? What might be a downside to using this session?
  9. You are a fund manager and are dissatisfied with one of the companies in your portfolio. You have decided shareholder activism is an appropriate strategy. Select one approach from the material to use and briefly note why you selected it.
  10. Chatter Corporation issued the following quarterly dividends last year: $0.15, $0.17, $0.20, and $0.25. The current stock price is $24.59. What is the dividend yield for this stock using this information?

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