primary market (P) transactions and which are (9%) 4. Indicate which of the below transactions...

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primary market (P) transactions and which are (9%) 4. Indicate which of the below transactions are secondary market (S) transactions: A mutual fund sells a block of shares in XYZ Corporation to a pension fund a. XYZ Corporation issues 2 million new shares to the public to raise cash for business development and expansion b. The founder and largest shareholder of XYZ Corporation sells a large block of shares through his broker C. 5. Corporations exhibit the following features (indicate T (true) or F (false) for each choice): (9%) a. Shareholders have unlimited personal liability for the full amount of the company 's debt b. Corporations incur agency costs to monitor managers and influence their actions Ownership and management are separated C. 6 An investor is in a 35% combined state and federal tax bracket. If municipal bonds offer 5.2% p.a. yields what must corporate bonds of a similar default risk offer for the investor to prefer them to municipals? (10%)

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