Exam 12: Investing in Stocks and Bonds

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Municipal bonds are exempt from [income tax | capital gains tax].

(Short Answer)

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Question 41

Cash dividends on common stock are most often paid

(Multiple Choice)

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Question 42

One would prefer a stock with steadily increasing earnings per share and return on equity.

(True/False)

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Question 43

Investors typically welcome their bonds being called because of the generous call premium paid.

(True/False)

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Question 44

The commonly-cited price for a bond is usually its clean bond price.

(True/False)

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Question 45

U-Need-This has $12 million liabilities,$12 million preferred stock,10 million shares of common stock outstanding,and $39 million in total assets.The book value is

(Multiple Choice)

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Question 46

A bond priced at 89 8/32. What is its price?

(Multiple Choice)

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Question 47

A company with low financial risk has little to no long-term debt.

(True/False)

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Question 48

John and Mary Smith own 500 shares of ABE stock.After the company pays a 6 percent stock dividend,John and Mary will own 530 shares of ABE stock.

(True/False)

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Question 49

The approximate yield-to-maturity of a bond is greater than the stated rate of interest when

(Multiple Choice)

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Question 50

Price fluctuations of defensive stocks follow the fluctuations of the market as a whole.

(True/False)

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Question 51

Pulling money out of the market exposes you to the significant risk that you'll miss the months of good returns that could help you recoup prior losses.

(True/False)

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Question 52

Market risk considers the possibility that the firm may fail.

(True/False)

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Question 53

Net Profit margin is a key measure of profitability that relates the net profits of a firm to its sales.

(True/False)

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Question 54

Julie Johnson is in the 31 percent tax bracket.If she were to purchase a $1,000 municipal bond that had a stated interest rate of 6.5%,the taxable equivalent yield would be

(Multiple Choice)

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Question 55

Which of the following statements about preferred stock is true?

(Multiple Choice)

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Question 56

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You are looking for a guaranteed steady stream of income;you should invest in [stocks | bonds].

(Short Answer)

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(73)

Question 57

Which of the following types of risk affect owners of fixed income securities more than owners of equity securities

(Multiple Choice)

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Question 58

Earnings per share can be defined as the return earned on behalf of each share of common and preferred stock,calculated by dividing all earnings by the total number of shares outstanding.

(True/False)

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Question 59

Purchasing power risk is of most concern during economic recession.

(True/False)

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Question 60

Showing 41 - 60 of 195

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Municipal bonds are exempt from [income tax | capital gains tax].

Cash dividends on common stock are most often paid

One would prefer a stock with steadily increasing earnings per share and return on equity.

Investors typically welcome their bonds being called because of the generous call premium paid.

The commonly-cited price for a bond is usually its clean bond price.

U-Need-This has $12 million liabilities,$12 million preferred stock,10 million shares of common stock outstanding,and $39 million in total assets.The book value is

A bond priced at 89 8/32. What is its price?

A company with low financial risk has little to no long-term debt.

John and Mary Smith own 500 shares of ABE stock.After the company pays a 6 percent stock dividend,John and Mary will own 530 shares of ABE stock.

The approximate yield-to-maturity of a bond is greater than the stated rate of interest when

Price fluctuations of defensive stocks follow the fluctuations of the market as a whole.

Pulling money out of the market exposes you to the significant risk that you'll miss the months of good returns that could help you recoup prior losses.

Market risk considers the possibility that the firm may fail.

Net Profit margin is a key measure of profitability that relates the net profits of a firm to its sales.

Julie Johnson is in the 31 percent tax bracket.If she were to purchase a $1,000 municipal bond that had a stated interest rate of 6.5%,the taxable equivalent yield would be

Which of the following statements about preferred stock is true?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You are looking for a guaranteed steady stream of income;you should invest in [stocks | bonds].

Which of the following types of risk affect owners of fixed income securities more than owners of equity securities

Earnings per share can be defined as the return earned on behalf of each share of common and preferred stock,calculated by dividing all earnings by the total number of shares outstanding.

Purchasing power risk is of most concern during economic recession.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

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