Question 1

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 2

Jangles Co. earned $1.80 per share. Assuming a closing price of $40, the PE ratio is: (Round to the nearest whole percent.)

Accepted Answer

A)  7 
B)  22 
C)  72 
D)  20 
E)  None of these 
A)  7 
B)  22 
C)  72 
D)  20 
E)  None of these

Question 3

Exxon sells its bonds at 108.375. The amount of premium or discount the bond is selling for is:

Accepted Answer

A)  $17.35 
B)  $13.75 
C)  $13.25 
D)  $13.57 
E)  None of these 
A)  $17.35 
B)  $13.75 
C)  $13.25 
D)  $13.57 
E)  None of these

Question 4

Bee Sting bought 400 shares of Google at $399.75 per share. Assume a commission of 2% of the purchase price. What is the total to Bee?

Accepted Answer

A)  $159,900 
B)  $156,702 
C)  $163,980 
D)  $163,098 
E)  None of these 
A)  $159,900 
B)  $156,702 
C)  $163,980 
D)  $163,098 
E)  None of these

Question 5

The yearly interest on a bond is the current selling price of the bond times the stated yearly interest rate.

Accepted Answer

A) True 
 B)False

Question 6

Bonds do not repay the face value in the future.

Accepted Answer

A) True 
 B)False

Question 7

Is the bond trading at a premium or a discount?

Accepted Answer

The answer of   Is the bond trading at...

Question 8

What is the bond interest rate?

Accepted Answer

The answer of   What is the bond interest...

Question 9

Stock represents shares of ownership in a company.

Accepted Answer

A) True 
 B)False

Question 10

Bond quotes are stated in:

Accepted Answer

A)  Dollars 
B)  Fractions of a dollar 
C)  Percents of face value 
D)  Percents of purchase price 
E)  None of these 
A)  Dollars 
B)  Fractions of a dollar 
C)  Percents of face value 
D)  Percents of purchase price 
E)  None of these

Question 11

The NAV helps an investor keep track of the value of his or her investment.

Accepted Answer

A) True 
 B)False

Question 12

The stock of VIC Corporation is trading at $39.63. The price-earnings ratio is 16 times earnings. The earnings per share for VIC Corporation are:

Accepted Answer

A)  $2.84 
B)  $2.48 
C)  $4.96 
D)  $6.34 
E)  None of these 
A)  $2.84 
B)  $2.48 
C)  $4.96 
D)  $6.34 
E)  None of these

Question 13

Bond quotes are stated in percents of face value.

Accepted Answer

A) True 
 B)False

Question 14

Bonds are usually in denominations of:

Accepted Answer

A)  $100 
B)  $1,000 
C)  $10,000 
D)  $100,000 
E)  None of these 
A)  $100 
B)  $1,000 
C)  $10,000 
D)  $100,000 
E)  None of these

Question 15

The price-earnings ratio is calculated by the closing price per share of stock divided by:

Accepted Answer

A)  Quarterly earnings per share 
B)  Dividend per year 
C)  Annual earnings per share 
D)  Net change 
E)  None of these 
A)  Quarterly earnings per share 
B)  Dividend per year 
C)  Annual earnings per share 
D)  Net change 
E)  None of these

Question 16

A mutual fund is made up of

Accepted Answer

A)  Many stocks 
B)  10 stocks 
C)  100 stocks 
D)  500 stocks 
E)  None of these 
A)  Many stocks 
B)  10 stocks 
C)  100 stocks 
D)  500 stocks 
E)  None of these

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The bond of Tuckpeck is 8¼ 14. The bond traded for a high of 93.25 and closed at 93. The current yield of the bond to the nearest tenth of a percent is:

Accepted Answer

A)  8.8% 
B)  8.7% 
C)  8.9% 
D)  8.6% 
E)  None of these 
A)  8.8% 
B)  8.7% 
C)  8.9% 
D)  8.6% 
E)  None of these

Question 19

Is the bond trading at a premium or a discount?

Accepted Answer

The answer of   Is the bond trading at...

Question 20

Jeff Ryan bought 200 shares of BUI for $19.50. Eight weeks later he sold the stock for $20.75. Assuming a 3% commission, his bottom line was a gain of:

Accepted Answer

A)  $250.00 
B)  $374.50 
C)  $8.50 
D)  $257.50 
E)  None of these 
A)  $250.00 
B)  $374.50 
C)  $8.50 
D)  $257.50 
E)  None of these

Exam 21: Stocks, Bonds, and Mutual Funds

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

Jangles Co. earned $1.80 per share. Assuming a closing price of $40, the PE ratio is: (Round to the nearest whole percent.)

Exxon sells its bonds at 108.375. The amount of premium or discount the bond is selling for is:

Bee Sting bought 400 shares of Google at $399.75 per share. Assume a commission of 2% of the purchase price. What is the total to Bee?

The yearly interest on a bond is the current selling price of the bond times the stated yearly interest rate.

Bonds do not repay the face value in the future.

Is the bond trading at a premium or a discount?

What is the bond interest rate?

Stock represents shares of ownership in a company.

Bond quotes are stated in:

The NAV helps an investor keep track of the value of his or her investment.

The stock of VIC Corporation is trading at $39.63. The price-earnings ratio is 16 times earnings. The earnings per share for VIC Corporation are:

Bond quotes are stated in percents of face value.

Bonds are usually in denominations of:

The price-earnings ratio is calculated by the closing price per share of stock divided by:

A mutual fund is made up of

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

The bond of Tuckpeck is 8¼ 14. The bond traded for a high of 93.25 and closed at 93. The current yield of the bond to the nearest tenth of a percent is:

Is the bond trading at a premium or a discount?

Jeff Ryan bought 200 shares of BUI for $19.50. Eight weeks later he sold the stock for $20.75. Assuming a 3% commission, his bottom line was a gain of:

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