Question 1

Ron bought one bond of Bee Company for 82.25. The original bond was 6 3/4 15. The current yield is (to the nearest tenth of a percent):

Accepted Answer

A) 8% 
B) 8.2% 
C) 8.3% 
D) 9% 
E) None of these 
A) 8% 
B) 8.2% 
C) 8.3% 
D) 9% 
E) None of these

Question 2

In April 2007, Sandi sold 1,600 shares of Federal Express at $105.00 per share. In May 2009, the stock reached a low during the Great Recession and was selling for $32.00 per share. Sandi used the proceeds from the 2007 sales and repurchased Federal Express at $32.00 per share in May 2009. What is the value of Sandi's stock holdings in Federal Express if the shares are selling for $91.00 today?

Accepted Answer

A) $168,000 
B) $51,200 
C) $477,750 
D) $239,000 
E) None of these 
A) $168,000 
B) $51,200 
C) $477,750 
D) $239,000 
E) None of these

Question 3

Stock represents shares of ownership in a company.

Accepted Answer

A) True 
 B)False

Question 4

Bond price-earnings ratios are similar to those of stocks.

Accepted Answer

A) True 
 B)False

Question 5

A bond quote of 74.375 is $743.50.

Accepted Answer

A) True 
 B)False

Question 6

If someone buys a bond for less than $1,000, that person will receive less annual interest.

Accepted Answer

A) True 
 B)False

Question 7

The stock yield is the monthly dividend divided by the closing price per share.

Accepted Answer

A) True 
 B)False

Question 8

The price-earnings ratio of stocks is not standard.

Accepted Answer

A) True 
 B)False

Question 9

A company that has no PE ratio has no earnings.

Accepted Answer

A) True 
 B)False

Question 10

Loretta Scholten buys nine bonds of Leo Co. 7 ¼ 16 at 103.375. The commission is $3.00 per bond. The current yield to the nearest tenth of a percent is:

Accepted Answer

A) 7.0% 
B) 7.1% 
C) 7.2% 
D) 7.3% 
E) None of these 
A) 7.0% 
B) 7.1% 
C) 7.2% 
D) 7.3% 
E) None of these

Question 11

Stock yield is found by the annual dividend divided by the:

Accepted Answer

A) Opening price per share 
B) Closing price per share 
C) Price-earnings ratio 
D) Net change for the day 
E) None of these 
A) Opening price per share 
B) Closing price per share 
C) Price-earnings ratio 
D) Net change for the day 
E) None of these

Question 12

Stocks are traded over the Internet.

Accepted Answer

A) True 
 B)False

Question 13

Al Roy bought five bonds of Jort Co. 11 3/4 at 93.25 and four bonds of Inst. System 12x08 for 81.125. If the commission on the bonds is $2.50 per bond, the total cost of all the purchases is:

Accepted Answer

A) $4,662.50 
B) $3,425.00 
C) $7,930.00 
D) $7,907.50 
E) None of these 
A) $4,662.50 
B) $3,425.00 
C) $7,930.00 
D) $7,907.50 
E) None of these

Question 14

A bond yield is the total annual interest of a bond divided by the total current cost of the bond.

Accepted Answer

A) True 
 B)False

Question 15

A stock price will rise if:

Accepted Answer

A) Supply of stock is greater than demand 
B) The price-earnings ratio is 10 or greater 
C) Stock yield is greater than 8% 
D) Demand for stock is greater than supply 
E) None of these 
A) Supply of stock is greater than demand 
B) The price-earnings ratio is 10 or greater 
C) Stock yield is greater than 8% 
D) Demand for stock is greater than supply 
E) None of these

Question 16

The stock of WAL-MAT pays a dividend of $.88. The stock opened at $18.25 and closed at $18.33. The stock yield is:

Accepted Answer

A) 4.8% 
B) 4.2% 
C) 4.1% 
D) 4.9% 
E) None of these 
A) 4.8% 
B) 4.2% 
C) 4.1% 
D) 4.9% 
E) None of these

Question 17

The yearly interest of a bond is the face value of the bond:

Accepted Answer

A) Divided by the stated yearly interest rate 
B) Plus the stated yearly interest rate 
C) Times the stated yearly interest rate 
D) Minus the stated yearly interest rate 
E) None of these 
A) Divided by the stated yearly interest rate 
B) Plus the stated yearly interest rate 
C) Times the stated yearly interest rate 
D) Minus the stated yearly interest rate 
E) None of these

Question 18

A commission is charged only when one is buying a stock.

Accepted Answer

A) True 
 B)False

Question 19

Zolt Inc. (zolt) stock is selling for $8.22 per share with an EPS of .45 cents per share. What is Zolt's PE ratio? (Round to nearest tenth.)

Accepted Answer

A) 18.3 
B) 19.5 
C) 8.3 
D) 20.0 
E) None of these 
A) 18.3 
B) 19.5 
C) 8.3 
D) 20.0 
E) None of these

Question 20

Bonds do not repay the face value in the future.

Accepted Answer

A) True 
 B)False

Exam 21: Stocks, Bonds and Mutual Funds

Ron bought one bond of Bee Company for 82.25. The original bond was 6 3/4 15. The current yield is (to the nearest tenth of a percent):

Stock represents shares of ownership in a company.

Bond price-earnings ratios are similar to those of stocks.

A bond quote of 74.375 is $743.50.

If someone buys a bond for less than $1,000, that person will receive less annual interest.

The stock yield is the monthly dividend divided by the closing price per share.

The price-earnings ratio of stocks is not standard.

A company that has no PE ratio has no earnings.

Loretta Scholten buys nine bonds of Leo Co. 7 ¼ 16 at 103.375. The commission is $3.00 per bond. The current yield to the nearest tenth of a percent is:

Stock yield is found by the annual dividend divided by the:

Stocks are traded over the Internet.

Al Roy bought five bonds of Jort Co. 11 3/4 at 93.25 and four bonds of Inst. System 12x08 for 81.125. If the commission on the bonds is $2.50 per bond, the total cost of all the purchases is:

A bond yield is the total annual interest of a bond divided by the total current cost of the bond.

A stock price will rise if:

The stock of WAL-MAT pays a dividend of $.88. The stock opened at $18.25 and closed at $18.33. The stock yield is:

The yearly interest of a bond is the face value of the bond:

A commission is charged only when one is buying a stock.

Zolt Inc. (zolt) stock is selling for $8.22 per share with an EPS of .45 cents per share. What is Zolt's PE ratio? (Round to nearest tenth.)

Bonds do not repay the face value in the future.

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