Investments Exam 2- Math from Chapters 5, 7, 8

A best efforts IPO underwriting consisted of 2.2 million shares at an offer price of $17 a share. The underwriter's fee was set at 6.65 percent. How many shares were sold if the issuer received $31,926,260.10? A. 2,011,800 shares B. 1,878,015 shares C. 1,760,915 shares D. 2,346,300 shares E. 2,053,700 shares

A

Alco Metals just sold 2.5 million shares through an IPO offering. The shares were offered at $25.50 a share and all shares were sold. The firm received a total of $67,250,000 for this issue. What was the spread? A. 5.49 percent B. 6.25 percent C. 6.40 percent D. 7.00 percent E. 7.20 percent

A

An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return? A. 9.33 percent B. 10.35 percent C. 11.54 percent D. 12.33 percent E. 13.00 percent

A

An index consists of the following securities. What is the value-weighted index return? A. -0.43 percent B. -1.46 percent C. 4.43 percent D. 4.51 percent E. 4.62 percent

A

An index has a market value of $689,400 at the beginning of the period and $722,009 at the end of the period. If you want the beginning index value to be 100, what is the ending index value? A. 104.73 B. 105.42 C. 105.67 D. 105.89 E. 106.13

A

Assume the DJIA closed at 15,150 last night. The divisor is 0.123017848. Assume that 29 of the stocks in the index were unchanged today. One stock increased in value from $44.80 a share yesterday to $47.90 a share today. What is the DJIA index value at the close of trading today? A. 15,175.20 B. 15,208.30 C. 15,365.60 D. 15,412.20 E. 15,524.10

A

Given the following information, what is the value of the advance/decline line on the second day of this 3-day period? A. -889 B. -804 C. -294 D. +147 E. +402

A

In a recent IPO, the Sausage Co. offered 1.4 million shares of stock at an offer price of $16 a share. The underwriting was conducted on a best efforts basis with a spread of 7.0 percent. The Sausage Co. received a total of $20,079,868.00 in sale proceeds. How many shares were sold? A. 1,349,453 shares B. 1,486,500 shares C. 1,498,200 shares D. 1,505,700 shares E. 1,508,400 shares

A

Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been received: How much will Bidder B have to spend to purchase all of the shares that have been allocated to him? A. $4,050.00 B. $4,212.00 C. $4,800.00 D. $5,200.00 E. $5,700.00

A

The following are the daily returns for both the overall market and for Dexter Inc. What is the cumulative abnormal return on Dexter, Inc., stock for these 5 days? A. -0.7 percent B. -0.3 percent C. -0.2 percent D. 0.3 percent E. 0.6 percent

A

A price-weighted index consists of stocks A, B, and C which are priced at $38, $21, and $26 a share, respectively. The current index divisor is 2.7. What will the new index divisor be if stock B undergoes a 3-for-1 stock split? A. 2.1684 B. 2.2553 C. 2.5890 D. 2.7000 E. 3.1447

B

A.B. Pharmaceutical announced FDA approval for a new drug on October 12. Uptown Drug Co. announced FDA approval for its new drug on October 14. No other information was released that would affect returns over this time period. What is the combined cumulative abnormal return for the 5 day period commencing 2 days prior to the FDA approval announcement date? Use the following data to answer this question. No trading occurred on October 15 or 16. A. 0.6 percent B. 1.0 percent C. 1.2 percent D. 1.3 percent E. 1.6 percent

B

Given the following information, what is the net money flow at the end of the trading day? A. -213,500 B. -103,000 C. 91,200 D. 187,600 E. 257,800

B

Given the following information, what is the value of the closing Arms? A. .82 B. .84 C. .92 D. 1.11 E. 1.22

B

Over the past 5 days, the common stock of Tyler Mfg. had daily returns of 0.2, -0.1, -0.2, 0.3, and 0.1 percent, respectively. For the same 5 days, the market had daily returns of 0.0, 0.1, -0.3, 0.4, and 0.2 percent, respectively. What is the cumulative abnormal return on Tyler Mfg. stock for this time period? A. -0.2 percent B. -0.1 percent C. 0.0 percent D. 0.1 percent E. 0.2 percent

B

What is the 3-day exponential moving average as of day 5 assuming that a weight of 60 percent is placed on the most recent price? A. $39.04 B. $39.07 C. $39.13 D. $39.22 E. $39.28

B

What is the 3-day simple moving average as of day 5, given the following information? A. $35.28 B. $35.35 C. $35.41 D. $35.57 E. $35.62

B

Yesterday, the DJIA closed at 12,309.16. The divisor is 0.123017848. Today, every one of the stocks in the index increased in value by $0.40 a share. What is the value of today's closing DJIA? A. 12,367 B. 12,407 C. 12,442 D. 12,564 E. 12,571

B

An index consists of the following securities and has an index divisor of 2.0. What is the price-weighted index return? A. -0.69 percent B. -0.18 percent C. 0.00 percent D. 0.22 percent E. 0.31 percent

C

An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return? A. 9.43 percent B. 9.67 percent C. 10.53 percent D. 10.91 percent E. 11.03 percent

C

An order book displays the following information: You place an order to sell 100 shares. At what price will your order be executed? A. $18.05 B. $18.06 C. $18.07 D. $18.11 E. $18.12

C

Given the following information, what is the net money flow at the end of the trading day? A. -290,500 B. -85,100 C. 322,200 D. 235,000 E. 421,400

C

Last year, Kathy purchased 3 shares of stock A at $50 a share. At the same time, she purchased 5 shares of stock B at $35 a share. Today, stock A is valued at $65 a share and stock B is worth $42 a share. What is the relative strength of stock A as compared to stock B? A. .84 B. .88 C. .93 D. 1.04 E. 1.14

C

ML Underwriters paid an issuer $37,694,528 as IPO proceeds. The IPO offered 1.86 million shares of which 1.835 million were sold at an offer price of $21.85 a share. The underwriting spread was 7.25 percent. What type of underwriting was this? A. best efforts B. variable C. firm commitment D. plain vanilla E. stand-by

C

Reliant Underwriters has agreed to a firm commitment underwriting in which they will pay $36.75 million in exchange for 3 million shares of stock for an IPO offering. The offering price is expected to be $13.50 a share. How much will the underwriters earn if all of the shares can be sold? A. $1.25 million B. $2.75 million C. $3.75 million D. $4.25 million E. $4.50 million

C

The price of a stock increased from $32 to $38. Using phi, what are the primary and secondary support areas for the stock? A. $35.33; $33.67 B. $33.67; $35.33 C. $35.71; $34.29 D. $38.14; $36.99 E. $36.99; $38.14

C

What is the 3-day exponential moving average as of day 4 assuming that a weight of 70 percent is placed on the most recent price? A. $50.81 B. $50.84 C. $50.87 D. $50.90 E. $50.94

C

You have the following information: You want the beginning price-weighted index of these two stocks to be 100. Given this, what is the ending index value? A. 93.44 B. 98.10 C. 107.02 D. 108.36 E. 110.40

C

A price-weighted index consists of stocks A, B, and C which are priced at $50, $35, and $15 a share, respectively. The current index divisor is 2.75. What will the new index advisor be if stock A undergoes a 5-for-1 stock split? A. 0.40 B. 0.65 C. 1.00 D. 1.65 E. 1.85

D

A recent survey indicates that 1,731 people are bearish on the market for every 1,000 that are bullish. What is the value of the market sentiment index based on this information? A. .36 B. .43 C. .57 D. .63 E. .75

D

An order book displays the following information: You place a market order to buy 100 shares. At what price will your order be executed? A. $18.13 B. $18.14 C. $18.16 D. $18.17 E. $18.18

D

Cee The Moon is offering 700 shares in a Dutch auction IPO. The following bids have been received: How much will Cee The Moon receive from this offering if the underwriter's fee is 5.5 percent? A. $9,905.75 B. $9,440.60 C. $10,184.25 D. $11,245.50 E. $12,095.30

D

Given the following information, what is the value of the closing Arms? A. 0.29 B. 0.36 C. 0.42 D. 2.81 E. 3.45

D

Mason Materials is offering 800 shares in a Dutch auction IPO. The following bids have been received: How many shares will be allocated to Bidder A? A. 0 B. 80 C. 125 D. 145 E. 200

D

Swenson Co. announced its merger plans on August 25 and had a daily return of 0.8 percent. Tyler Co. announced its merger plans on August 26 and had a daily return of 0.6 percent. The Underwood Co. announced its merger plans on August 27 and had a daily return of -0.5 percent. The daily market returns for August 25 through August 27 were 0.2, 0.3, and -0.4, respectively. What is the combined cumulative abnormal return for the announcement date? A. 0.0 percent B. 0.2 percent C. 0.6 percent D. 0.8 percent E. 1.0 percent

D

The series of Fibonacci numbers contains the sequential values of 610 and 987. What is the next number in this series? A. 1,264 B. 1,364 C. 1,419 D. 1,597 E. 1,633

D

What is the 4-day simple moving average as of day 7, given the following information? A. $42.88 B. $43.13 C. $43.22 D. $43.31 E. $44.61

D

You have the following information: You want the beginning price-weighted index of these two stocks to be 500. Given this, what is the ending index value? A. 408.33 B. 487.08 C. 511.19 D. 576.09 E. 612.24

D

A price-weighted index consists of stocks A, B, and C which are priced at $27, $11, and $18 a share, respectively. The current index divisor is 2.24. If stock B undergoes a 1-for-3 reverse stock split, the new index divisor will be: A. 1.9467. B. 2.1806. C. 2.2000. D. 3.0842. E. 3.1200.

E

A survey of 64 of your fellow classmates determines that 19 of them are bullish on the market while the remainder is bearish. What is the market sentiment index for this group of individuals? A. .28 B. .33 C. .44 D. .58 E. .70

E

Altoona Train stock increased from $18 a share to $25 a share. Based on phi, what are the primary and secondary support areas for this stock? A. $21.46; $19.19 B. $21.67; $20.38 C. $21.79; $20.11 D. $22.12; $20.58 E. $22.33; $20.67

E

An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return? A. -4.76 percent B. -2.05 percent C. 3.09 percent D. 5.17 percent E. 7.48 percent

E

An index consists of the following securities. What is the value-weighted index return? A. 12.75 percent B. 15.00 percent C. 16.50 percent D. 18.75 percent E. 25.00 percent

E

An index consists of the following securities. What is the value-weighted index return? A. 3.72 percent B. 5.09 percent C. 6.61 percent D. 8.75 percent E. 10.07 percent

E

DT Metals is offering 700 shares in a Dutch auction IPO. The following bids have been received: What will the gross proceeds be for this offering? A. $12,000 B. $12,600 C. $13,200 D. $13,300 E. $14,700

E

Given the following information, what is the value of the advance/decline line on the third day of this 3-day period? A. -277 B. -198 C. +202 D. +326 E. +409

E