Question 1: Take the following list of securities and arrange them in order of their priority of claims
Preferred stock Senior debanture
Subordinated debanture Senior secured debt
Common stock Junior secured debt
Question 2: What is the difference between the following yields: coupon rate, current yeild, yeild to maturity?
Question 3: How does the preemptive right protect stockholders from dilution?
Question 4: If common stockholders are the owners of the company, why do they have the last claim on assets and a residual claim on income?
Question 5: Preferred stock is often referred to as a hybrid security. What is meant by this term as applied to preferred stock?
Question 6: Why is the cumulative feature of preferred stock particularly important to preferred stockholders?
Question 7: What is the difference between horizontal integration and vertical integration? How does anti-trust policy affect the nature of mergers?
Question 8: Why do management and stockholders often have divergent viewpoints about the desirability of a takeover?
Question 9: What risks does a foreign affiliate of a multinational firm face in today's business world?
Question 10: List the factors that affect the value of a currency in foreign exachange markets.
Question 11: Differentiate between the spot exchange rate and the forward exchange rate.
Question 12: What is LIBOR? How does it compare to the U.S. prime rate?