YOU SCORED
{{Score}}/10
Question 1
Sorry, that's incorrect.
The Correct Answer is Estimate of the value of equity inclusive of all rights of control.
With respect to valuation of closely-held companies, the most appropriate base for estimating a discount for minority interest is the:
Question 2
Sorry, that's incorrect.
The Correct Answer is Goodwill.
If a business combination results in the acquirer recording a deferred tax asset for the tax losses of the acquiree, the offsetting credit is to:
Question 3
Sorry, that's incorrect.
The Correct Answer is Securities issued by the company, derivatives related to the company's securities, and any investment funds that hold securities related to the company.
According to the Standards, if a member has material nonpublic information about a company, he is most likely prohibited from using the information to trade:
Question 4
Sorry, that's incorrect.
The Correct Answer is Increase.
A company is financing a share repurchase entirely with debt. All else being equal, if the before-tax cost of debt is greater than the earnings yield and the after-tax cost of debt is less than the earnings yield, EPS will most likely:
Question 5
Sorry, that's incorrect.
The Correct Answer is Cash dividend.

Which of the following company distributions to shareholders will most likely impact the company's capital structure?

Question 6
Sorry, that's incorrect.
The Correct Answer is Debt, preferred stock, and long-term leases.

Financial risk results from the use of:

Question 7
Sorry, that's incorrect.
The Correct Answer is Debt and equity.

All else being equal, if a leveraged company's cost of debt and of equity remain constant, the company's marginal cost of capital most likely remains the same when the company issues new:

Question 8
Sorry, that's incorrect.
The Correct Answer is Ability for shareholders to convene special meetings.

Which of the following would most likely be effective in defending against a hostile takeover?

Question 9
Sorry, that's incorrect.
The Correct Answer is Limit the ability to incur additional debt unless certain tests are satisfied.

A negative covenant in a bond indenture is most likely a provision to:

Question 10
Sorry, that's incorrect.
The Correct Answer is Time to debt maturity.

Debtholders' conflict with shareholders over capital structure decisions most likely increases with the: