Question 1

Match the following terms with their definitions.
-Price-earnings ratio

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 2

Stocks are quoted in decimals.

Accepted Answer

A) True 
 B)False

Question 3

Match the following terms with their definitions.
-Cumulative preferred

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 4

Assume a bond sells at 97.75 (pays 8% interest). What is the total interest Bill will receive at the end of each year if he buys four bonds?

Accepted Answer

.08 × $1,0

Question 5

Bill Bone buys five bonds of UIC Co. at 92. What is the premium or discount per bond for Bill?

Accepted Answer

$1,000 - (

Question 6

Calculate the closing price of this bond:
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \
\hline \text { Action 11 \quad22 } & & 10 & 102 & + 1.25 \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the closing price of this bond:
...

Question 7

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

Accepted Answer

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

Question 8

Cumulative Preference stockholders receive $.90 per share. There are 40,000 shares. For the last four years no dividends have been paid. This year $170,000 is paid out in dividends. How much in dividends to Preferred Stockholders are still in arrears?

Accepted Answer

$.90 × 40,000 = $36,

Question 9

Match the following terms with their definitions.
-NAV

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 10

The stock of Oracle is selling for $48.50 per share. The earnings per share are 9 times earnings. Calculate the price-earnings ratio to the nearest tenth for Oracle.

Accepted Answer

The answer of The stock of Oracle is selling for...

Question 11

Amy purchased 100 shares of Monsanto Company for $66.10 per share. Today the stock is selling for $80.45. Assuming a charge of $7.00 to buy and sell, how much did Amy earn if she sold her shares today?

Accepted Answer

A) $6,617 
B) $8,038 
C) $1,421 
D) $14,655 
E) None of these 
A) $6,617 
B) $8,038 
C) $1,421 
D) $14,655 
E) None of these

Question 12

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

Question 13

A bond quote of 74.375 is $743.50.

Accepted Answer

A) True 
 B)False

Question 14

Jamie bought 200 shares of MCN stock at $29.38 per share. Eight months later she sold the stock at $31.63 per share. Assume a 2% commission is charged on both buying and selling the stock. What was Jamie's ROI?

Accepted Answer

Bought: 200 × $29.38 = $5,876;

Question 15

Jamie King bought one bond of Easter Company for 110. The original bond was 6 1/2 18. Jamie wants to know the current yield to the nearest tenth percent.

Accepted Answer

6 ½ % = 6.5% = .065

Question 16

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 17

If Bill Margin sells five bonds at 104.50, what amount will he receive? (Disregard commissions.)If the bonds pay 13% annually, what is the current yield to the nearest tenth percent?

Accepted Answer

13% × $1,000 = $130;

Question 18

Cumulative preferred stock is not entitled to dividends in arrears.

Accepted Answer

A) True 
 B)False

Question 19

Stocks are traded over the Internet.

Accepted Answer

A) True 
 B)False

Question 20

Stocks are always quoted in:

Accepted Answer

A) Percents 
B) Quarters of a dollar 
C) Decimals 
D) Quarter lots 
E) None of these 
A) Percents 
B) Quarters of a dollar 
C) Decimals 
D) Quarter lots 
E) None of these

Exam 21: Stocks, Bonds, and Mutual Funds

Match the following terms with their definitions. -Price-earnings ratio

Stocks are quoted in decimals.

Match the following terms with their definitions. -Cumulative preferred

Assume a bond sells at 97.75 (pays 8% interest). What is the total interest Bill will receive at the end of each year if he buys four bonds?

Bill Bone buys five bonds of UIC Co. at 92. What is the premium or discount per bond for Bill?

Calculate the closing price of this bond: Bond Current Yield Vol Close Net Change Action 11 22 10 102 +1.25

Assume the company earns $1.62 per share. What was the sale volume? 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

Cumulative Preference stockholders receive $.90 per share. There are 40,000 shares. For the last four years no dividends have been paid. This year $170,000 is paid out in dividends. How much in dividends to Preferred Stockholders are still in arrears?

Match the following terms with their definitions. -NAV

The stock of Oracle is selling for $48.50 per share. The earnings per share are 9 times earnings. Calculate the price-earnings ratio to the nearest tenth for Oracle.

Amy purchased 100 shares of Monsanto Company for $66.10 per share. Today the stock is selling for $80.45. Assuming a charge of $7.00 to buy and sell, how much did Amy earn if she sold her shares today?

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:

A bond quote of 74.375 is $743.50.

Jamie bought 200 shares of MCN stock at $29.38 per share. Eight months later she sold the stock at $31.63 per share. Assume a 2% commission is charged on both buying and selling the stock. What was Jamie's ROI?

Jamie King bought one bond of Easter Company for 110. The original bond was 6 1/2 18. Jamie wants to know the current yield to the nearest tenth percent.

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

If Bill Margin sells five bonds at 104.50, what amount will he receive? (Disregard commissions.)If the bonds pay 13% annually, what is the current yield to the nearest tenth percent?

Cumulative preferred stock is not entitled to dividends in arrears.

Stocks are traded over the Internet.

Stocks are always quoted in:

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Markups and Markdowns: Perishables and Breakeven Analysis

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Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

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The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

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