Weekly Review Quiz as of 2009-12-03
Finance

Dubai's Woes Shake U.A.E., Region
by Chip Cummins, Dana Cimilluca, and Sara Schaefer Muñoz
11/27/2009
http://online.wsj.com/article/SB20001424052748703499404574559452437253122.html

1. What announcement led to a sell-off of banking stocks across Europe and Asia and jacked up the price of insuring against Dubai defaults?

* a) The Dubai government said it would take charge of restructuring its corporate flagship, Dubai World, and asked creditors to accept delayed payments.
b) The United Arab Emirates announced that it would not stand behind nor support Dubai’s debt.
c) A council of clerics in Saudi Arabia proclaimed that Dubai’s bonds do not meet Islamic standards and thus should not be repaid.
d) J.P. Morgan lowered its estimates of Dubai’s oil reserves by 50%.
e) all of the above

Sharp's New Plant Reinvents Japan Manufacturing Model
by Daisuke Wakabayashi
11/30/2009
http://online.wsj.com/article/SB20001424052748704498804574559820344775310.html

2. Which of the following statements about Sharp’s new production complex in Western Japan is INCORRECT?

a) It uses the industry’s biggest, or “10th generation”, sheets which allow it to produce nearly twice as many 40-inch LCD panels per sheet.
b) The plant’s suppliers are on site.
c) It is considered the most expensive new factory site ever built in Japan.
* d) Technical problems delayed the factory site's opening for three years.
e) All of the above are correct.

After Cashing In on Rally, Banks Ponder a Rate Rise
by Tom Lauricella
11/30/2009
http://online.wsj.com/article/SB20001424052748703300504574565803002522932.html

3. How did the returns on the financial stocks in the S&P 500 compare to the gains on the overall S&P index since March?

a) the same loss
b) the same gain
* c) more than double the gain
d) more than five times the loss
e) one-third the gain


GE, Vivendi in a Deal on NBC Stake
by Jeffrey McCracken and Sam Schechner
12/01/2009
http://online.wsj.com/article/SB20001424052748703300504574568451118377622.html

4. General Electric has reached a tentative deal to buy Vivendi SA’s minority stake in which of GE’s business units?

a) GE Financial
b) aviation
* c) NBC Universal
d) appliances
e) consumer products

5. Under what conditions will General Electric have to pay Vivendi an additional $ 2 billion?

a) If GE’s CEO Jeffery Immelt steps down or is fired before 2012.
b) If the interest coverage ratios on the debt GE will issue to fund the deal falls below 2.0.
c) If GE’s stockholders vote against the deal.
d) If revenues at the business unit rise more than 50% in 2010.
* e) If GE’s separate Comcast deal doesn’t close by the end of 2010.