Question 1

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 2

Jan Flynn bought four bonds of Reebok Company (11 3/4 16)at 88.25. Assuming a commission of $4 per bond, (A)what was Jan's total cost and (B)how much interest will Jan receive from the bonds after one year?

Accepted Answer

A. 8825 × $1,000 = $882.50 × 4

Question 3

Bonds do not repay the face value in the future.

Accepted Answer

A) True 
 B)False

Question 4

Assume $1.19 EPS. What was yesterday's closing price?
 $$\begin{array} { | c | c | c | c | c | c | c | c | c | } 
\hline  { \text { 52 Weeks } } & \begin{array} { c } 
\text { Stock } \
\text { (Sym) }
\end{array} & \text { DIV } & \begin{array} { c } 
\text { YLD } \
\%
\end{array} & \text { PE } & \begin{array} { c } 
\text { Volume } \
( 100 \text { 's } )
\end{array} & \text { Close } & \begin{array} { c } 
\text { Net } \
\text { Change }
\end{array} \
\hline \text { HI } \mid \text { LO } & & & & & & & \
\hline 34 \mid21.56 & \text { Kellogg K } & 1.01 & & & 10103 & 32.13 & - 0.07 \
\hline
\end{array}$$

Accepted Answer

The answer of Assume $1.19 EPS. What was yesterday's closing...

Question 5

The offer price of a mutual fund is always the NAV and commission.

Accepted Answer

A) True 
 B)False

Question 6

In what year does the bond mature?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \
\hline \text { NDon } 7\frac {\text {  1}} { \text {2 } }\quad23& & 12 & 67.50 & - 8 \
\hline
\end{array}$$

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

Moe Corporation pays its cumulative preferred stock $2.10 per share. There are 30,000 shares of preferred and 80,000 shares of common. In 2015, 2016, and 2017 no dividends were paid. Now, in 2018, $600,000 was declared. How much did each class of stock receive?

Accepted Answer

Amount paid to preferred stock

Question 9

The price-earnings ratio of stocks is not standard.

Accepted Answer

A) True 
 B)False

Question 10

The Ranger Co. earns $4.50 per share. Today, the stock is trading at 42 1/2. The company pays an annual dividend of $.85. Can you calculate (A)the price-earnings ratio (round to whole number)and (B)the yield on the stock?

Accepted Answer

A. 42.50% × $1,000

Question 11

Angel Ford bought 6 bonds of VBF Company at the closing price of 82 and 6 bonds of RC Company at the closing price of 87. Assume the commission on the bonds is $4 per bond. What is the total cost of all the purchases?

Accepted Answer

.82 × $1,000 = $820; 6 ($820)+

Question 12

Jeff Sano bought one bond of Blue Co. for 125. The original bond was 6 3/4 21. Jeff wants to know the current yield to the nearest tenth percent. Can you help Jeff with the calculation?

Accepted Answer

6.75% × $1,000 = $67

Question 13

Match the following terms with their definitions.
-No-load fund

Accepted Answer

A) Bond sells for more than face value 
B) Symbol of stock 
C) Total interest divided by total cost 
D) Dividend in arrears is paid before common price 
E) What shares are quoted in
F)Dividend per share divided by closing price
G)No sales charge
H)Price per share divided by earnings per share
I)Payment to stockholder
J)A type of stock
K)Dollar value of one share of a mutual fund
L)Denominations of $1,000 
A) Bond sells for more than face value 
B) Symbol of stock 
C) Total interest divided by total cost 
D) Dividend in arrears is paid before common price 
E) What shares are quoted in
F)Dividend per share divided by closing price
G)No sales charge
H)Price per share divided by earnings per share
I)Payment to stockholder
J)A type of stock
K)Dollar value of one share of a mutual fund
L)Denominations of $1,000

Question 14

Assume that a bond sells at 98 ½ (pays 15% interest). What is the total interest Bill will receive at the end of each year if Bill owns 4 bonds?

Accepted Answer

15% = .15

Question 15

Match the following terms with their definitions.
-Stock yield

Accepted Answer

A) Bond sells for more than face value 
B) Symbol of stock 
C) Total interest divided by total cost 
D) Dividend in arrears is paid before common price 
E) What shares are quoted in
F)Dividend per share divided by closing price
G)No sales charge
H)Price per share divided by earnings per share
I)Payment to stockholder
J)A type of stock
K)Dollar value of one share of a mutual fund
L)Denominations of $1,000 
A) Bond sells for more than face value 
B) Symbol of stock 
C) Total interest divided by total cost 
D) Dividend in arrears is paid before common price 
E) What shares are quoted in
F)Dividend per share divided by closing price
G)No sales charge
H)Price per share divided by earnings per share
I)Payment to stockholder
J)A type of stock
K)Dollar value of one share of a mutual fund
L)Denominations of $1,000

Question 16

Is this bond trading at a premium or a discount?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \
\hline \text { Action 11\quad 22 } & & 10 & 102 & + 1.25 \
\hline
\end{array}$$

Accepted Answer

The answer of Is this bond trading at a premium...

Question 17

Stock represents shares of ownership in a company.

Accepted Answer

A) True 
 B)False

Question 18

The stock of MNC Inc. pays a dividend of $3.44. The stock opened at $89.19 and closed at $90.28. The stock yield is:

Accepted Answer

A) 3.8% 
B) 3.2% 
C) 3.1% 
D) 4.9% 
E) None of these 
A) 3.8% 
B) 3.2% 
C) 3.1% 
D) 4.9% 
E) None of these

Question 19

Assume a bond sells at 97.75 (pays 8% interest). If Bill Smith buys four bonds (assume no commission), what is the total dollar cost?

Accepted Answer

.9775 × $1

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 21: Stocks, Bonds, and Mutual Funds

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.)

Jan Flynn bought four bonds of Reebok Company (11 3/4 16)at 88.25. Assuming a commission of $4 per bond, (A)what was Jan's total cost and (B)how much interest will Jan receive from the bonds after one year?

Bonds do not repay the face value in the future.

Assume $1.19 EPS. What was yesterday's closing price? 52 Weeks Stock (Sym) DIV YLD \% PE Volume (100 's ) Close Net Change HI \mid LO 34\mid21.56 Kellogg K 1.01 10103 32.13 -0.07

The offer price of a mutual fund is always the NAV and commission.

In what year does the bond mature? Bond Current Yield Vol Close Net Change NDon 723 12 67.50 -8

Assume the company earns $.70 per share. What was the highest price at which stock traded for the year? 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

Moe Corporation pays its cumulative preferred stock $2.10 per share. There are 30,000 shares of preferred and 80,000 shares of common. In 2015, 2016, and 2017 no dividends were paid. Now, in 2018, $600,000 was declared. How much did each class of stock receive?

The price-earnings ratio of stocks is not standard.

The Ranger Co. earns $4.50 per share. Today, the stock is trading at 42 1/2. The company pays an annual dividend of $.85. Can you calculate (A)the price-earnings ratio (round to whole number)and (B)the yield on the stock?

Angel Ford bought 6 bonds of VBF Company at the closing price of 82 and 6 bonds of RC Company at the closing price of 87. Assume the commission on the bonds is $4 per bond. What is the total cost of all the purchases?

Jeff Sano bought one bond of Blue Co. for 125. The original bond was 6 3/4 21. Jeff wants to know the current yield to the nearest tenth percent. Can you help Jeff with the calculation?

Match the following terms with their definitions. -No-load fund

Assume that a bond sells at 98 ½ (pays 15% interest). What is the total interest Bill will receive at the end of each year if Bill owns 4 bonds?

Match the following terms with their definitions. -Stock yield

Is this bond trading at a premium or a discount? Bond Current Yield Vol Close Net Change Action 1122 10 102 +1.25

Stock represents shares of ownership in a company.

The stock of MNC Inc. pays a dividend of $3.44. The stock opened at $89.19 and closed at $90.28. The stock yield is:

Assume a bond sells at 97.75 (pays 8% interest). If Bill Smith buys four bonds (assume no commission), what is the total dollar cost?

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

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