Question 1

Last year,High-Tech Electronics earned $1.50 per share.If the current market value for a share of stock is $45,what is the firm's P/E ratio?

Accepted Answer

A) 0.03 
B) 3.30 
C) 30.00 
D) 33.00 
E) 45.00 
A) 0.03 
B) 3.30 
C) 30.00 
D) 33.00 
E) 45.00

Question 2

From an investor's standpoint,an increase in estimates of earnings per share is a good sign.

Accepted Answer

A) True 
 B)False

Question 3

Which one of the following is a true statement?

Accepted Answer

A) The over-the-counter market is a network of account executives who buy and sell the securities of corporations that are not listed on a securities exchange. 
B) Account executives in the OTC market specialize or make a market in any listed security. 
C) OTC trading is for investors who want to buy or sell stocks in stores. 
D) Account executives' operating in the OTC market use specialists to help them trade securities. 
E) NASDAQ is regulated by the New York Stock ExchangE. 
A) The over-the-counter market is a network of account executives who buy and sell the securities of corporations that are not listed on a securities exchange. 
B) Account executives in the OTC market specialize or make a market in any listed security. 
C) OTC trading is for investors who want to buy or sell stocks in stores. 
D) Account executives' operating in the OTC market use specialists to help them trade securities. 
E) NASDAQ is regulated by the New York Stock ExchangE.

Question 4

An investment theory based on the assumption that stock price movements are purely random is called the ____________ theory.

Accepted Answer

A) fundamental 
B) technical 
C) efficient market 
D) primary 
E) market 
A) fundamental 
B) technical 
C) efficient market 
D) primary 
E) market

Question 5

Dollar cost averaging helps investors avoid the problem of buying high and selling low.

Accepted Answer

A) True 
 B)False

Question 6

A limit order allows investors to specify the price at which a security will be bought or sold.

Accepted Answer

A) True 
 B)False

Question 7

Fred Manufacturing Company pays an annual dividend of $0.65 per share,has earnings per share of $2.50,and sells for $35 a share.What is this firm's dividend payout ratio?

Accepted Answer

A) 18 percent 
B) 25 percent 
C) 28 percent 
D) 26 percent 
E) 32 percent 
A) 18 percent 
B) 25 percent 
C) 28 percent 
D) 26 percent 
E) 32 percent

Question 8

By using the Yahoo! Finance website,an investor can find all of the following information on a stock except its:

Accepted Answer

A) historical prices. 
B) stock symbol. 
C) current market value. 
D) most recent dividenD. 
E) actual rate of return for the next year. 
A) historical prices. 
B) stock symbol. 
C) current market value. 
D) most recent dividenD. 
E) actual rate of return for the next year.

Question 9

Most speculators use a buy and hold technique.

Accepted Answer

A) True 
 B)False

Question 10

Orlando Blodgett is buying stock in the Getaway Caribbean Cruise Company today.He had thought about buying the stock yesterday and if he had,he would have received this quarter's dividend.However,since he waited until today,he will not receive that dividend payment.Given this information,which one of the following dates applies to this stock today?

Accepted Answer

A) record date 
B) ex-dividend date 
C) payment date 
D) stock split date 
E) stock repurchase date 
A) record date 
B) ex-dividend date 
C) payment date 
D) stock split date 
E) stock repurchase date

Question 11

Which one of the following statements is true?

Accepted Answer

A) Board members are appointed by a company's CEO. 
B) Stockholders do not pay taxes on stock dividends. 
C) Intelligent investors should be concerned about future after-tax corporate profits when investing. 
D) If a cash dividend is declared by the board of directors,each stockholder will receive a different dollar amount depending on the length of time they have owned their shares. 
E) Corporate dividends are always paid in cash. 
A) Board members are appointed by a company's CEO. 
B) Stockholders do not pay taxes on stock dividends. 
C) Intelligent investors should be concerned about future after-tax corporate profits when investing. 
D) If a cash dividend is declared by the board of directors,each stockholder will receive a different dollar amount depending on the length of time they have owned their shares. 
E) Corporate dividends are always paid in cash.

Question 12

Which one of the following statements is false?

Accepted Answer

A) Numerical measures can help investors decide if it is time to buy or sell a stock. 
B) Future earnings may be one of the most significant measures to examine when evaluating a stock. 
C) Higher earnings generally equate to higher stock value. 
D) Corporate earnings are reported in a firm's annual report. 
E) To date,it is impossible to determine corporate earnings by using the Internet. 
A) Numerical measures can help investors decide if it is time to buy or sell a stock. 
B) Future earnings may be one of the most significant measures to examine when evaluating a stock. 
C) Higher earnings generally equate to higher stock value. 
D) Corporate earnings are reported in a firm's annual report. 
E) To date,it is impossible to determine corporate earnings by using the Internet.

Question 13

The beta of the S&P 500 is:

Accepted Answer

A) 0. 
B) 1. 
C) 10. 
D) 50. 
E) 100. 
A) 0. 
B) 1. 
C) 10. 
D) 50. 
E) 100.

Question 14

On May 20,2010,Tony Blackman bought 100 shares of stock from XYZ Corporation.The quarterly dividend is $1.25 per share and the record date is May 25.How much will Tony receive for this quarterly dividend?

Accepted Answer

A) $0.00 
B) $1.25 
C) $12.50 
D) $125.00 
E) $0.13 
A) $0.00 
B) $1.25 
C) $12.50 
D) $125.00 
E) $0.13

Question 15

A proxy is a legal form that lists the issues to be decided at a stockholders' meeting and requests that stockholders transfer their voting rights to some individual or individuals.

Accepted Answer

A) True 
 B)False

Question 16

If the board of directors approves a two-for-one stock split,an investor who owns 150 shares before the split will own ____________ shares after the split.

Accepted Answer

A) 75 
B) 150 
C) 225 
D) 300 
E) 450 
A) 75 
B) 150 
C) 225 
D) 300 
E) 450

Question 17

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called:

Accepted Answer

A) dollar cost averaging. 
B) dividend reinvestment plan. 
C) buy and hold technique. 
D) regulated transaction. 
E) secured transaction. 
A) dollar cost averaging. 
B) dividend reinvestment plan. 
C) buy and hold technique. 
D) regulated transaction. 
E) secured transaction.

Question 18

ABC Corporation has assets that total $12 million and liabilities that total $4 million.It also has 500,000 shares of stock outstanding.What is the ABC's book value per share?

Accepted Answer

A) $32 
B) $24 
C) $16 
D) $8 
E) $0 
A) $32 
B) $24 
C) $16 
D) $8 
E) $0

Question 19

Quincy Martin Manufacturing stock has a market value of $48 a share.If the book value is $40 a share,the firm's market-to-book ratio is:

Accepted Answer

A) 0.8. 
B) 1.0. 
C) 1.2. 
D) 2.0. 
E) 2.4. 
A) 0.8. 
B) 1.0. 
C) 1.2. 
D) 2.0. 
E) 2.4.

Question 20

The minimum commission charged by most brokerage firms for buying or selling stock is between $7 and $35.

Accepted Answer

A) True 
 B)False

Last year,High-Tech Electronics earned $1.50 per share.If the current market value for a share of stock is $45,what is the firm's P/E ratio?

From an investor's standpoint,an increase in estimates of earnings per share is a good sign.

Which one of the following is a true statement?

An investment theory based on the assumption that stock price movements are purely random is called the ____________ theory.

Dollar cost averaging helps investors avoid the problem of buying high and selling low.

A limit order allows investors to specify the price at which a security will be bought or sold.

Fred Manufacturing Company pays an annual dividend of $0.65 per share,has earnings per share of $2.50,and sells for $35 a share.What is this firm's dividend payout ratio?

By using the Yahoo! Finance website,an investor can find all of the following information on a stock except its:

Most speculators use a buy and hold technique.

Which one of the following statements is true?

Which one of the following statements is false?

The beta of the S&P 500 is:

On May 20,2010,Tony Blackman bought 100 shares of stock from XYZ Corporation.The quarterly dividend is $1.25 per share and the record date is May 25.How much will Tony receive for this quarterly dividend?

A proxy is a legal form that lists the issues to be decided at a stockholders' meeting and requests that stockholders transfer their voting rights to some individual or individuals.

If the board of directors approves a two-for-one stock split,an investor who owns 150 shares before the split will own ____________ shares after the split.

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called:

ABC Corporation has assets that total $12 million and liabilities that total $4 million.It also has 500,000 shares of stock outstanding.What is the ABC's book value per share?

Quincy Martin Manufacturing stock has a market value of $48 a share.If the book value is $40 a share,the firm's market-to-book ratio is:

The minimum commission charged by most brokerage firms for buying or selling stock is between $7 and $35.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 14: Investing in Stocks

Last year,High-Tech Electronics earned $1.50 per share.If the current market value for a share of stock is $45,what is the firm's P/E ratio?

From an investor's standpoint,an increase in estimates of earnings per share is a good sign.

Which one of the following is a true statement?

An investment theory based on the assumption that stock price movements are purely random is called the ____________ theory.

Dollar cost averaging helps investors avoid the problem of buying high and selling low.

A limit order allows investors to specify the price at which a security will be bought or sold.

Fred Manufacturing Company pays an annual dividend of $0.65 per share,has earnings per share of $2.50,and sells for $35 a share.What is this firm's dividend payout ratio?

By using the Yahoo! Finance website,an investor can find all of the following information on a stock except its:

Most speculators use a buy and hold technique.

Which one of the following statements is true?

Which one of the following statements is false?

The beta of the S&P 500 is:

On May 20,2010,Tony Blackman bought 100 shares of stock from XYZ Corporation.The quarterly dividend is $1.25 per share and the record date is May 25.How much will Tony receive for this quarterly dividend?

A proxy is a legal form that lists the issues to be decided at a stockholders' meeting and requests that stockholders transfer their voting rights to some individual or individuals.

If the board of directors approves a two-for-one stock split,an investor who owns 150 shares before the split will own ____________ shares after the split.

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called:

ABC Corporation has assets that total $12 million and liabilities that total $4 million.It also has 500,000 shares of stock outstanding.What is the ABC's book value per share?

Quincy Martin Manufacturing stock has a market value of $48 a share.If the book value is $40 a share,the firm's market-to-book ratio is:

The minimum commission charged by most brokerage firms for buying or selling stock is between $7 and $35.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters