Which of the following are the main features of a 'bought out deal' in the context of corporate funding?
(i) It is a method of offering securities to the public through a sponsor or underwriter.
(ii) A bank, financial institution, or an individual can never not be a sponsor.
(iii) The securines are listed in one or more stock exchanges within a time-frame mutually agreed upon by the company and the sponsor.
(iv) The bought out deals facilitate better investor protection.
(v) As the sponsor may occupy a large number of shares, it may trouble the company.
A. (i), (ii), (iii), (iv) and (v)
B. (i), (iii), (iv) and (v)
C. (ii), (iii), (iv) and (v)
D. (i), (ii), (iii) and (v)
Answer: Option B
This Question Belongs to Commerce >> Business Finance
The appropriate ratio for indicating liquidity crisis is
A. Operating ratio
B. Sales turnover ratio
C. Current ratio
D. Acid test ratio
A. Net present value method
B. Internal rate of return method
C. Profitablity index method
D. None of the above
A. a-4, b-3, c-1, d-2
B. a-3, b-4, c-1, d-2
C. a-2, b-3, c-1, d-4
D. a-3, b-2, c-4, d-1
Which one of the following assumptions is not included in the James E. Walter Valuation model?
A. All financing by retained earnings only
B. No change in the key variables such as EPS and DPS
C. The firm has finite life
D. All earnings are either distributed as dividends or invested internally immediately
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