Question 1

A bond selling for more than the face value is selling at a premium.

Accepted Answer

A) True 
 B)False

Question 2

Assume the company earns $1.62 per share. Calculate the PE number. Round to the nearest whole number.
 $$\begin{array} { | c | c | c | c | c | c | c | c | c | } 
\hline { \text { 52 Weeks } } & \begin{array} { c } 
\text { Stock } \
\text { (Sym) }
\end{array} & \text { DIV } & \begin{array} { c } 
\text { YLD } \
\%
\end{array} & \text { PE } & \begin{array} { c } 
\text { Volume } \
\left( 100 ^ { \prime } \text { 's } \right)
\end{array} & \text { Close } & \begin{array} { c } 
\text { Net } \
\text { Change }
\end{array} \
\hline \text { HI } \mid \text { LO } & & & & & & & \
\hline 49.94 \mid 40.25 & \text { Jaymen Co. } & .58 & & ? & 51615 & 46.90 & - 0.50 \
\hline
\end{array}$$

Accepted Answer

The answer of Assume the company earns $1.62 per share....

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

The general public is allowed to trade stock on the floor of the stock exchange.

Accepted Answer

A) True 
 B)False

Question 5

Assume the company earns $1.62 per share. What was the lowest price at which the stock traded for the year?
 $$\begin{array} { | c | c | c | c | c | c | c | c | c | } 
\hline  { \text { 52 Weeks } } & \begin{array} { c } 
\text { Stock } \
\text { (Sym) }
\end{array} & \text { DIV } & \begin{array} { c } 
\text { YLD } \
\%
\end{array} & \text { PE } & \begin{array} { c } 
\text { Volume } \
\left( 100 ^ { \prime } \text { 's } \right)
\end{array} & \text { Close } & \begin{array} { c } 
\text { Net } \
\text { Change }
\end{array} \
\hline \text { HI } \mid \text { LO } & & & & & & & \
\hline 49.94 \mid 40.25 & \text { Jaymen Co. } & .58 & & ? & 51615 & 46.90 & - 0.50 \
\hline
\end{array}$$

Accepted Answer

The answer of Assume the company earns $1.62 per share....

Question 6

Jeff Sellers bought 200 shares of ATL stock at $29.38. Eight months later, he sold the stock at $31.63. Assuming a 2% commission charge, what is the bottom line for Jeff?

Accepted Answer

200 × $29.38 = $5,876 × (100%

Question 7

In what year does the bond mature?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \
\hline \text { Action 11\quad 22 } & & 10 & 102 & + 1.25 \
\hline
\end{array}$$

Accepted Answer

The answer of In what year does the bond mature?
...

Question 8

Preferred stock can:

Accepted Answer

A) Be cumulative 
B) Have equal rights to common stock 
C) Never receive dividends in arrears 
D) Never have preference to dividends over common stockholders 
E) None of these 
A) Be cumulative 
B) Have equal rights to common stock 
C) Never receive dividends in arrears 
D) Never have preference to dividends over common stockholders 
E) None of these

Question 9

Assume the company earns $.70 per share. What was the sales volume?
 $$\begin{array} { | c | c | c | c | c | c | c | c | c | } 
\hline { 52 \text { Weeks } } & \begin{array} { c } 
\text { Stock } \
( \text { Sym) }
\end{array} & \text { DIV } & \begin{array} { c } 
\text { YLD } \
\%
\end{array} & \text { PE } & \begin{array} { c } 
\text { Volume } \
\left( 100 ^ { \prime } \text { s } \right)
\end{array} & \text { Close } & \begin{array} { c } 
\text { Net } \
\text { Change }
\end{array} \
\hline \text { HI } \mid \text { LO } & & & & & & & \
\hline 13.57 \mid 8.38 & \text { Shoreline HLT } & .08 & & & 13411 & 11.19 & - 0.25 \
\hline
\end{array}$$

Accepted Answer

The answer of Assume the company earns $.70 per share....

Question 10

What is the current yield on this bond (round to the nearest tenth of a percent)?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \
\hline \text { NDon } 7\frac {\text {  1}} { \text {2 } }\quad23& ? & 12 & 67.50 & - 8 \
\hline
\end{array}$$

Accepted Answer

The answer of What is the current yield on this...

Question 11

Complete the following chart. Assume 22,000 shares of cumulative preferred at $1.75 per share and 49,000 shares of common.
 $$\begin{array} { | l | l | l | l | } 
\hline & 2016 & 2017 & 2018 \
\hline \text { Dividend } & & & \
\text { Paid } & \$ 12,000 & \$ 0 & \$ 210,000 \
\hline \text { Preferred } & & & \
\text { Dividend } & \text { A } & \text { B } & \text { C } \
\hline \text { Common } & & & \
\text { Dividend } & \text { D } & \text { E } & \text { F } \
\hline
\end{array}$$

Accepted Answer

A. $12,000; B. 0; C.

Question 12

Stockbrokers:

Accepted Answer

A) Do not act as middlemen 
B) Cannot trade stock 
C) Charge a commission for buying and selling 
D) Are always right in all their stock recommendations 
E) None of these 
A) Do not act as middlemen 
B) Cannot trade stock 
C) Charge a commission for buying and selling 
D) Are always right in all their stock recommendations 
E) None of these

Question 13

Using the bond below, what was yesterday's close in dollars?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \
\hline \text { NDon  }7\frac {\text {  1}} { \text {2 } }\quad23 & & 12 & 67.50 & - 8 \
\hline
\end{array}$$

Accepted Answer

The answer of Using the bond below, what was yesterday's...

Question 14

Abby Ring buys five bonds of Moe Co. 12 3/4 15 at 89.375 with a commission of $5.00 per bond. Her total annual interest is:

Accepted Answer

A) $127.50 
B) $637.05 
C) $1,275 
D) $637.50 
E) None of these 
A) $127.50 
B) $637.05 
C) $1,275 
D) $637.50 
E) None of these

Question 15

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 16

Randy Smith bought 180 shares of a mutual fund with an NAV of $14.85. This fund has a load charge of 6%. What is the offer price, and what did Randy pay for the investment?

Accepted Answer

Offer price = $14.85

Question 17

Royal Co. receives a dividend of $4.88 per share. Today the closing price of the stock is $59.95. The current stock yield to the nearest tenth of a percent is:

Accepted Answer

A) 8.1% 
B) 8.0% 
C) 8.2% 
D) 8.3% 
E) None of these 
A) 8.1% 
B) 8.0% 
C) 8.2% 
D) 8.3% 
E) None of these

Question 18

Loretta Scholten buys nine bonds of Leo Co. 7 1/4 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 19

A bond closed at 102.25. The current yield is 10.4%. The annual interest is:

Accepted Answer

A) $102.90 
B) $106.34 
C) $105.80 
D) $104.60 
E) None of these 
A) $102.90 
B) $106.34 
C) $105.80 
D) $104.60 
E) None of these

Question 20

A bond quote of 82.25 in dollars is equal to:

Accepted Answer

A) $82.25 
B) $8.25 
C) $8,025.50 
D) $822.50 
E) None of these 
A) $82.25 
B) $8.25 
C) $8,025.50 
D) $822.50 
E) None of these

Exam 21: Stocks, Bonds, and Mutual Funds

A bond selling for more than the face value is selling at a premium.

Assume the company earns $1.62 per share. Calculate the PE number. Round to the nearest whole number. 52 Weeks Stock (Sym) DIV YLD \% PE Volume 10 's Close Net Change HI \mid LO 49.94\mid40.25 Jaymen Co. .58 ? 51615 46.90 -0.50

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

The general public is allowed to trade stock on the floor of the stock exchange.

Assume the company earns $1.62 per share. What was the lowest price at which the stock traded for the year? 52 Weeks Stock (Sym) DIV YLD \% PE Volume 10 's Close Net Change HI \mid LO 49.94\mid40.25 Jaymen Co. .58 ? 51615 46.90 -0.50

Jeff Sellers bought 200 shares of ATL stock at $29.38. Eight months later, he sold the stock at $31.63. Assuming a 2% commission charge, what is the bottom line for Jeff?

In what year does the bond mature? Bond Current Yield Vol Close Net Change Action 1122 10 102 +1.25

Preferred stock can:

Assume the company earns $.70 per share. What was the sales volume? 52 Weeks Stock ( Sym) DIV YLD \% PE Volume 10 s Close Net Change HI \mid LO 13.57\mid8.38 Shoreline HLT .08 13411 11.19 -0.25

What is the current yield on this bond (round to the nearest tenth of a percent)? Bond Current Yield Vol Close Net Change NDon 723 ? 12 67.50 -8

Complete the following chart. Assume 22,000 shares of cumulative preferred at $1.75 per share and 49,000 shares of common. 2016 2017 2018 Dividend Paid \ 12,000 \ 0 \ 210,000 Preferred Dividend A B C Common Dividend D E F

Stockbrokers:

Using the bond below, what was yesterday's close in dollars? Bond Current Yield Vol Close Net Change NDon 723 12 67.50 -8

Abby Ring buys five bonds of Moe Co. 12 3/4 15 at 89.375 with a commission of $5.00 per bond. Her total annual interest is:

Bonds are usually in denominations of:

Randy Smith bought 180 shares of a mutual fund with an NAV of $14.85. This fund has a load charge of 6%. What is the offer price, and what did Randy pay for the investment?

Royal Co. receives a dividend of $4.88 per share. Today the closing price of the stock is $59.95. The current stock yield to the nearest tenth of a percent is:

Loretta Scholten buys nine bonds of Leo Co. 7 1/4 16 at 103.375. The commission is $3.00 per bond. The current yield to the nearest tenth of a percent is:

A bond closed at 102.25. The current yield is 10.4%. The annual interest is:

A bond quote of 82.25 in dollars is equal to:

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