Q1. (TCO A) A corporation seeking to sell new equity securities to the public for the first time, in order to raise cash for capital investment, would most likely

Group of answer choices

a. conduct an IPO with the assistance of an investment banker.

b. engage in a secondary market sale of equity.

c. conduct a private placement to a large number of potential buyers.

d. place an ad in the Wall Street Journal soliciting retail suppliers of funds.

e. None of the above

Q 2 . (TCO A) Depository institutions include _____.

Group of answer choices

a. banks

b. thrifts

c. finance companies

d. All of the above

e. Both A and B

Q. 3 (TCO A) Of the following, the most likely effect of an increase in income tax rates would be to

Group of answer choices

a. decrease the savings rate.

b. decrease the supply of loanable funds.

c. increase interest rates.

d. All of the above

Q 4 (TCO A) You want have $5 million when you retire in 40 years.You believe you can earn 9% per year on your investment.How much must you invest each year to achieve your goal when you retire? (Ignore all taxes)

Group of answer choices

a. $10,412

b. $11,619

c. $14,798

d. $15,295

e. None of the above

Q. 5 (TCO A) The relationship between maturity and yield to maturity is called the _____.

Group of answer choices

a. loan covenant

b. term structure

c. bond indenture

d. Fisher Effect

e. DRP structure