Question 1

A growth stock is known for its high dividend yields.

Accepted Answer

A) True 
 B)False

Question 2

Publicly traded stocks listed on a major exchange are not very liquid investments.

Accepted Answer

A) True 
 B)False

Question 3

The dividend yield tells investors which of the following?

Accepted Answer

A)  What their portfolio is worth on the open market 
B)  How much in the way of a return they would receive if the stock price and the dividend level remain constant 
C)  When the company will be releasing dividends 
D)  How much in total the company has available to pay out in dividends 
E)  none of the above 
A)  What their portfolio is worth on the open market 
B)  How much in the way of a return they would receive if the stock price and the dividend level remain constant 
C)  When the company will be releasing dividends 
D)  How much in total the company has available to pay out in dividends 
E)  none of the above

Question 4

Distinguish between the technical analysis and fundamental approaches of valuation of common stock.

Accepted Answer

Technical analysis takes a number of for

Question 5

A(n)________ is a legal agreement signed by a stockholder allowing someone else to vote on his or her behalf at the corporation's annual meeting.

Accepted Answer

A)  voting contract 
B)  agency contact 
C)  contingency contract 
D)  proxy 
E)  none of the above 
A)  voting contract 
B)  agency contact 
C)  contingency contract 
D)  proxy 
E)  none of the above

Question 6

According to the risk-return relationship,commercial paper usually has a higher risk and return than long-term corporate bonds.

Accepted Answer

A) True 
 B)False

Question 7

This equation,dividends next year/required rate of return minus growth rate tells us the stock's

Accepted Answer

A)  dividend yield. 
B)  earnings per share. 
C)  value. 
D)  growth potential. 
E)  book-to-price ratio. 
A)  dividend yield. 
B)  earnings per share. 
C)  value. 
D)  growth potential. 
E)  book-to-price ratio.

Question 8

Some firms have negative earnings per share numbers.

Accepted Answer

A) True 
 B)False

Question 9

Your investment goal is to receive a stream of income from your investment.Which of the following would be important information to determine whether a particular stock purchase would suit your plan?

Accepted Answer

A)  The earnings per share 
B)  The market-to-book ratio 
C)  The book value 
D)  The dividend yield 
A)  The earnings per share 
B)  The market-to-book ratio 
C)  The book value 
D)  The dividend yield

Question 10

The dividend yield on a share of common stock is

Accepted Answer

A)  available at most large companies. 
B)  the amount of annual dividends divided by the market price of the stock. 
C)  the taxes you pay on the reinvested dividends. 
D)  all of the above. 
E)  only A and B. 
A)  available at most large companies. 
B)  the amount of annual dividends divided by the market price of the stock. 
C)  the taxes you pay on the reinvested dividends. 
D)  all of the above. 
E)  only A and B.

Question 11

What are the four basic investment questions a potential investor should answer before investing?

Accepted Answer

Value: Is this a good price for the stoc

Question 12

The firm will pay an annual dividend this year of $2 per share.The current market price of the stock is $40.00 per share.The book value of this stock is $24.00 per share.The earnings per share for this firm is $5.75.What is the current dividend yield of this stock?

Accepted Answer

A)  14.38% 
B)  8.33% 
C)  23.9% 
D)  5% 
A)  14.38% 
B)  8.33% 
C)  23.9% 
D)  5%

Question 13

Compared to other investment options,we can safely say that investing in stocks

Accepted Answer

A)  has equal risk. 
B)  has greater risk. 
C)  has less risk. 
D)  is not worth the risk. 
A)  has equal risk. 
B)  has greater risk. 
C)  has less risk. 
D)  is not worth the risk.

Question 14

Stock splits increase the number of the shares you own,but decrease the value of your total holdings with the company.

Accepted Answer

A) True 
 B)False

Question 15

The S&P 500 is a much broader index than the Dow.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following questions should potential investors answer before investing?

Accepted Answer

A)  Is this a good price for the stock? 
B)  Is this firm in a position that will allow profitability in the future? 
C)  Are this firm's strengths and weaknesses likely to get better or worse? 
D)  Are this firm's threats and opportunities likely to get better or worse? 
E)  All of the above 
A)  Is this a good price for the stock? 
B)  Is this firm in a position that will allow profitability in the future? 
C)  Are this firm's strengths and weaknesses likely to get better or worse? 
D)  Are this firm's threats and opportunities likely to get better or worse? 
E)  All of the above

Question 17

The phrase ________ is sadly appropriate for the actions of some people,as they perceive that investment success rests in making frequent transactions.

Accepted Answer

A)  "playing the market" 
B)  "timing the market" 
C)  "go big or lose your home" 
D)  "buy low, sell high" 
A)  "playing the market" 
B)  "timing the market" 
C)  "go big or lose your home" 
D)  "buy low, sell high"

Question 18

Discuss the concept of using beta for investing in stocks.

Accepted Answer

Beta is a mathematical process to quanti

Question 19

ComChip is a computer chip manufacturer whose stock is selling at $50 per share.Next year's net earnings,minus the preferred stock dividends,is estimated to be $200,000.The company currently has 100,000 shares of common stock outstanding.What is the firm's P/E ratio?

Accepted Answer

A)  50.00 
B)  45.80 
C)  25.00 
D)  27.78 
A)  50.00 
B)  45.80 
C)  25.00 
D)  27.78

Question 20

When investors talk about movements in the market,they generally refer to the Russell 1000.

Accepted Answer

A) True 
 B)False

A growth stock is known for its high dividend yields.

Publicly traded stocks listed on a major exchange are not very liquid investments.

The dividend yield tells investors which of the following?

Distinguish between the technical analysis and fundamental approaches of valuation of common stock.

A(n)________ is a legal agreement signed by a stockholder allowing someone else to vote on his or her behalf at the corporation's annual meeting.

According to the risk-return relationship,commercial paper usually has a higher risk and return than long-term corporate bonds.

This equation,dividends next year/required rate of return minus growth rate tells us the stock's

Some firms have negative earnings per share numbers.

Your investment goal is to receive a stream of income from your investment.Which of the following would be important information to determine whether a particular stock purchase would suit your plan?

The dividend yield on a share of common stock is

What are the four basic investment questions a potential investor should answer before investing?

The firm will pay an annual dividend this year of $2 per share.The current market price of the stock is $40.00 per share.The book value of this stock is $24.00 per share.The earnings per share for this firm is $5.75.What is the current dividend yield of this stock?

Compared to other investment options,we can safely say that investing in stocks

Stock splits increase the number of the shares you own,but decrease the value of your total holdings with the company.

The S&P 500 is a much broader index than the Dow.

Which of the following questions should potential investors answer before investing?

The phrase ________ is sadly appropriate for the actions of some people,as they perceive that investment success rests in making frequent transactions.

Discuss the concept of using beta for investing in stocks.

ComChip is a computer chip manufacturer whose stock is selling at $50 per share.Next year's net earnings,minus the preferred stock dividends,is estimated to be $200,000.The company currently has 100,000 shares of common stock outstanding.What is the firm's P/E ratio?

When investors talk about movements in the market,they generally refer to the Russell 1000.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 12: Investing in Stocks

A growth stock is known for its high dividend yields.

Publicly traded stocks listed on a major exchange are not very liquid investments.

The dividend yield tells investors which of the following?

Distinguish between the technical analysis and fundamental approaches of valuation of common stock.

A(n)________ is a legal agreement signed by a stockholder allowing someone else to vote on his or her behalf at the corporation's annual meeting.

According to the risk-return relationship,commercial paper usually has a higher risk and return than long-term corporate bonds.

This equation,dividends next year/required rate of return minus growth rate tells us the stock's

Some firms have negative earnings per share numbers.

Your investment goal is to receive a stream of income from your investment.Which of the following would be important information to determine whether a particular stock purchase would suit your plan?

The dividend yield on a share of common stock is

What are the four basic investment questions a potential investor should answer before investing?

The firm will pay an annual dividend this year of $2 per share.The current market price of the stock is $40.00 per share.The book value of this stock is $24.00 per share.The earnings per share for this firm is $5.75.What is the current dividend yield of this stock?

Compared to other investment options,we can safely say that investing in stocks

Stock splits increase the number of the shares you own,but decrease the value of your total holdings with the company.

The S&P 500 is a much broader index than the Dow.

Which of the following questions should potential investors answer before investing?

The phrase ________ is sadly appropriate for the actions of some people,as they perceive that investment success rests in making frequent transactions.

Discuss the concept of using beta for investing in stocks.

ComChip is a computer chip manufacturer whose stock is selling at $50 per share.Next year's net earnings,minus the preferred stock dividends,is estimated to be $200,000.The company currently has 100,000 shares of common stock outstanding.What is the firm's P/E ratio?

When investors talk about movements in the market,they generally refer to the Russell 1000.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters