BUSI 536 Quiz Private Equity

BUSI 536 Quiz: Private Equity & Corporate Restructuring

Covers the Textbook material from Module 6: Week 6.

1. Private equity firms have typically been compensated according to the following “formula”:
2. Examples of the types of institutions that become limited partners in private equity funds include:
3. Kaplan and Schoar found which of the following with respect to private equity firms?
4. Which of the following is a way that private equity Rrms can extract money from the targets they take over:
5. Which of the following are examples of private equity Rrms?
6. In recent years private equity firms have increasingly been able to negotiate “covenant lite” loans.
7. Research by Eric Stafford has showed that individual investors can’t really replicate the returns of private equity managers.
8. Phalippou and Gottschalg analyzed the same return data as Kaplan and Schoar but found that private equity returns trailed the S&P 500 when unexited deals were taken into account.
9. Glode and Green theorize that the fundings of Kaplan and Schoar may be due to insufficient disclosure by private equity firms.
10. Harris, Jenkinson, and Kaplan’s research showed that private equity returns outperformed the market by over 3% annually.
11. Altman and Kishore showed that:
12. Altman and Namacher found the following historical average default rates applied to high-yield bonds:
13. Which of the following factors contributed to the collapse of the junk bond market?
14. Asquith et al. showed that a failure to consider which of the following was a flaw in the Altman and Namacher junk bond studies?
15. Which of the following investment banks refused to participate in the junk bond market?
16. Junk bond–financed takeovers were mainly concentrated in specific industries that were deregulated.
17. Stapled financing is a prearranged financing package put together for potential buyers by the seller and its investment bank.
18. The original issue high-yield bond market got its start in the late 1970s.
19. In the years after the Great Recession, especially the years 2015–2018, the leveraged loan market steadily declined.
20. The fallout from the S&L crisis caused the market supply of high-yield bonds to sharply rise.
21. Which of the following are examples of pension- related employee benefit plans?
22. The sell-offs by Starwood following its acquisition of Taittinger were motivated by:
23. Asian spin-off volume:
24. The sale of Miller by Altria accomplished what:
25. Involuntary divestitures generally have what effects?
26. A defensive spin-off is where a target sells off a division to make the company less attractive to bidders.
27. Boise Cascade abandoned its core business and focused on the business of Office Max, which it had previously acquired.
28. The trend in the number of divestitures and sell-offs tends to be opposite that of M&As and the movement in the economy in general.
29. First Data shareholders were able to realize increased value when Western Union was spun off.
30. If a public company issues stock in its own subsidiary, these shares do not have to be registered by the SEC in order to be publicly traded as the parent company’s shares are already registered.
31. Andrade and Kaplan found that the causes of financial distress can be traced to:
32. Creditors seeking payments from a company in reorganization bankruptcy in the United States must file:
33. Dun & Bradstreet showed that which of the following are causes of business failure?
34. George and Hwang found that firms with high distress costs had:
35. Tashjian, Lease, and McConnell found that pre-voted prepacks:
36. Larger companies tend to do better in Chapter 11 bankruptcy than smaller ones.
37. Denis and Denis show that while poor deal pricing was a factor in the failure of firms in the very early 1990s, the 1990–1991 recession was the primary cause.
38. In Chapter 11, when an automatic stay has been granted creditors cannot seize the assets of bankrupt companies without getting court approval.
39. A prepackaged bankruptcy may also provide tax benefits because net operating losses are treated differently in a workout than in a bankruptcy
40. The Crystal Oil Company was the first major prepackaged bankruptcy.