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NEW QUESTION: 1
Mary is interested in buying shares of the Lambchops Corporation, which sells over-the-counter. The
market maker with the best bid price--$3.15--is Veggie Investments. The market maker with the best ask
price--$3.27-is Carnivor Investments. Mary conducts trades in NYSE-listed stocks through her broker,
Omnivor and Associates. Given this scenario, which of the following statements is true?
A. Mary can buy shares of Lambchops Corporation at the bid price of $3.15 by contacting Omnivor and
Associates.
B. Mary can buy shares of Lambchops Corporation at the ask price of $3.27 by contacting Omnivor and
Associates.
C. Mary can buy shares of Lambchops Corporation at the bid price of $3.15 by contacting Veggie
Investments directly.
D. Mary can buy shares of Lambchops Corporation at the ask price of $3.27 by contacting Carnivor
Investments directly.
Answer: B
Explanation:
Mary can buy shares of Lambchops Corporation for $3.27 from the market maker with the
best ask price, Carnivor, by contacting her broker, Omnivor and Associates, which will execute the
transaction. The ask price is the price at which market makers in the over-the-counter market are willing to
sell the stock, and over-the-counter transactions, like NYSE transactions, are executed by brokers.
NEW QUESTION: 2
Jorgensen Products has just issued 25,000,000 in 4.50% annual coupon bonds at a market yield of
4 .80%. The bonds have a maturity of 8 years. What adjustments would an analyst make to the CFO at the end of the first year?
A. Increase by 51,543
B. Decrease by 488,681
C. Decrease by 51,543
Answer: C
Explanation:
Proceeds of bond issue: PMT = 1,125,000; I/Y = 4.80; FV = 25,000,000; N = 8; CPT PV =
2 4,511,316 Jorgensen will recognize this as a liability. Its annual interest will be, interest = 0.048 x
2 4,511,316 = 1,176,543
Jorgensen records a CFO of -1,125,000 based on the coupon payment. The analyst would reduce the
CFO by 51,543 to reflect the higher interest cost (= 1,176,543 - 1,125,000). Thus, CFO would be reduced by 51,543.
NEW QUESTION: 3
HOTSPOT
Answer:
Explanation:
NEW QUESTION: 4
A. Option A
B. Option C
C. Option B
D. Option D
Answer: B,C
Explanation:
References: http://www.biztalkgurus.com/blogs/msft-biztalk-community/wcf- nettcprelaybinding-streaming-gotcha
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