Question 1

\A positive price-to-book ratio indicates something is wrong with a company's use of its assets.

Accepted Answer

A) True 
 B)False

Question 2

A stock that has a negative beta tends to

Accepted Answer

A) be stable compared to the market as a whole. 
B) be volatile compared to the market as a whole. 
C) move up when the market as a whole moves down. 
D) move up when the market as a whole moves down 
A) be stable compared to the market as a whole. 
B) be volatile compared to the market as a whole. 
C) move up when the market as a whole moves down. 
D) move up when the market as a whole moves down

Question 3

All bonds have a maturity date by which the principal of the debt must be paid.

Accepted Answer

A) True 
 B)False

Question 4

Toni and Felix are considering buying stock. They would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year:
  
-What is Sudsy Soap's dividend yield?

Accepted Answer

A) 1.4% 
B) 1.6% 
C) 2.1% 
D) 3.0% 
A) 1.4% 
B) 1.6% 
C) 2.1% 
D) 3.0%

Question 5

State laws require corporations to make bond interest payments on time.

Accepted Answer

A) True 
 B)False

Question 6

Countercyclical stocks have a beta

Accepted Answer

A) above 1.0. 
B) below 1.0. 
C) of 0. 
D) that is negative. 
A) above 1.0. 
B) below 1.0. 
C) of 0. 
D) that is negative.

Question 7

If a bond is purchased at a premium,its current yield will be higher than its coupon rate of interest.​

Accepted Answer

A) True 
 B)False

Question 8

When a bond is purchased at a discount from its face value,yield to maturity will be ____ the coupon rate printed on the certificate.

Accepted Answer

A) more than 
B) less than 
C) the same as 
D) Not enough information is given to answer the question. 
A) more than 
B) less than 
C) the same as 
D) Not enough information is given to answer the question.

Question 9

A margin account with a brokerage firm allows the broker to buy and sell securities at will.

Accepted Answer

A) True 
 B)False

Question 10

Employees can benefit from the appreciation in the stock in their company even if they put no money down if their employer offers

Accepted Answer

A) fringe benefits. 
B) employee stock options. 
C) bonuses tied to corporate sales. 
D) flexible spending accounts. 
A) fringe benefits. 
B) employee stock options. 
C) bonuses tied to corporate sales. 
D) flexible spending accounts.

Question 11

A benefit of Treasury securities is that they

Accepted Answer

A) represent a safe source of current income. 
B) have excellent liquidity. 
C) are simple to acquire and sell. 
D) All of these. 
A) represent a safe source of current income. 
B) have excellent liquidity. 
C) are simple to acquire and sell. 
D) All of these.

Question 12

The dividend reported in stock listings is the past year's annual dividend.

Accepted Answer

A) True 
 B)False

Question 13

The returns on common stocks have historically been half as high as the returns on cash savings.

Accepted Answer

A) True 
 B)False

Question 14

Investors generally find it more convenient to keep securities in their street names.

Accepted Answer

A) True 
 B)False

Question 15

In making a common stock investment,the investor becomes an owner of the assets and earnings of a business corporation.

Accepted Answer

A) True 
 B)False

Question 16

An investor can make money on bond investments by receiving

Accepted Answer

A) interest income. 
B) dividend income. 
C) capital gains. 
D) both interest income and capital gains. 
A) interest income. 
B) dividend income. 
C) capital gains. 
D) both interest income and capital gains.

Question 17

Rosa's is a small chain of Mexican food restaurants that features five delicious varieties of salsa. The business has grown over the past ten years from a hobby to a small corporation with 200,000 shares of common stock outstanding. The corporation has not issued any preferred stock. The following is Rosa's latest financial data:
  
-What is the price/earnings ratio for Rosa's?

Accepted Answer

A) 9.3 
B) 13.6 
C) 32.8 
D) 35.0 
A) 9.3 
B) 13.6 
C) 32.8 
D) 35.0

Question 18

When a stock dividend is paid out,

Accepted Answer

A) the total value of an individual's holdings will increase. 
B) each current shareholder will receive more shares of stock. 
C) the total value of the corporation will increase. 
D) each shareholder will own a larger percentage of the corporation. 
A) the total value of an individual's holdings will increase. 
B) each current shareholder will receive more shares of stock. 
C) the total value of the corporation will increase. 
D) each shareholder will own a larger percentage of the corporation.

Question 19

Stock selection takes time because there are more than 8,000 public companies available.

Accepted Answer

A) True 
 B)False

Question 20

Bonnie owned 1,000 shares of Barton Creek Corporation worth $24 a share when the company declared a 6 percent stock dividend.After the stock dividend was paid,Bonnie owned ____ shares.

Accepted Answer

A) 1,000 
B) 1,060 
C) 1,025 
D) 1,042 
A) 1,000 
B) 1,060 
C) 1,025 
D) 1,042

\A positive price-to-book ratio indicates something is wrong with a company's use of its assets.

A stock that has a negative beta tends to

All bonds have a maturity date by which the principal of the debt must be paid.

Toni and Felix are considering buying stock. They would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year: -What is Sudsy Soap's dividend yield?

State laws require corporations to make bond interest payments on time.

Countercyclical stocks have a beta

If a bond is purchased at a premium,its current yield will be higher than its coupon rate of interest.

When a bond is purchased at a discount from its face value,yield to maturity will be ____ the coupon rate printed on the certificate.

A margin account with a brokerage firm allows the broker to buy and sell securities at will.

Employees can benefit from the appreciation in the stock in their company even if they put no money down if their employer offers

A benefit of Treasury securities is that they

The dividend reported in stock listings is the past year's annual dividend.

The returns on common stocks have historically been half as high as the returns on cash savings.

Investors generally find it more convenient to keep securities in their street names.

In making a common stock investment,the investor becomes an owner of the assets and earnings of a business corporation.

An investor can make money on bond investments by receiving

When a stock dividend is paid out,

Stock selection takes time because there are more than 8,000 public companies available.

Bonnie owned 1,000 shares of Barton Creek Corporation worth $24 a share when the company declared a 6 percent stock dividend.After the stock dividend was paid,Bonnie owned ____ shares.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 14: Investing in Stocks and Bonds

\A positive price-to-book ratio indicates something is wrong with a company's use of its assets.

A stock that has a negative beta tends to

All bonds have a maturity date by which the principal of the debt must be paid.

Toni and Felix are considering buying stock. They would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year: -What is Sudsy Soap's dividend yield?

State laws require corporations to make bond interest payments on time.

Countercyclical stocks have a beta

If a bond is purchased at a premium,its current yield will be higher than its coupon rate of interest.​

When a bond is purchased at a discount from its face value,yield to maturity will be ____ the coupon rate printed on the certificate.

A margin account with a brokerage firm allows the broker to buy and sell securities at will.

Employees can benefit from the appreciation in the stock in their company even if they put no money down if their employer offers

A benefit of Treasury securities is that they

The dividend reported in stock listings is the past year's annual dividend.

The returns on common stocks have historically been half as high as the returns on cash savings.

Investors generally find it more convenient to keep securities in their street names.

In making a common stock investment,the investor becomes an owner of the assets and earnings of a business corporation.

An investor can make money on bond investments by receiving

When a stock dividend is paid out,

Stock selection takes time because there are more than 8,000 public companies available.

Bonnie owned 1,000 shares of Barton Creek Corporation worth $24 a share when the company declared a 6 percent stock dividend.After the stock dividend was paid,Bonnie owned ____ shares.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

If a bond is purchased at a premium,its current yield will be higher than its coupon rate of interest.