FIRE 314 Exam _2 with answers

FIRE 314 Exam _2 with answers - Name (PRINT) _ Signature _...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Name (PRINT) _______________________________ Signature _________________________________ FIRE 314 Exam #2 Fall ‘09 1) The services provided by an investment banker are: _______________________________________ _______ Advice, Marketing / Distribution, Underwriting / Risk Assumption _________________________________________________________________________________ 2) The secondary market provides _____ liquidity _____ and ____ valuation __________, and as a result is the ____ Cap[ital Budgeting Mechanism ________________ of our economy. 3) I enter a sell stop order on 500 shares of PDQ at $30.00/shr, with a limit at $28.00. My shares will be sold at _________ above 28 _________________________________________________. 4) I buy 500 shares of ABC at $25/shr., using 40% margin. If the price of ABC declines to $17.50, my margin is: Amount Borrowed = 0.6 X 25 = $15/shr Margin = (17.50 – 15.00)/17.50 = 0.142857 => 14.3% 5) I short 300 shares of XYZ at $35/shr. A month later XYZ pays a $0.75 dividend on earnings of $1.50
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/07/2009 for the course FIRE 314 taught by Professor Upton during the Spring '09 term at VCU.

Page1 / 3

FIRE 314 Exam _2 with answers - Name (PRINT) _ Signature _...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online