Question 1

Typically,the best time to invest in the stock market is when the market is very volatile.

Accepted Answer

A) True 
 B)False

Question 2

The commonly cited price for a bond is usually its clean bond price.

Accepted Answer

A) True 
 B)False

Question 3

Common stocks pay a guaranteed dividend each year.

Accepted Answer

A) True 
 B)False

Question 4

Earnings per share (EPS)tell the stockholder the amount of dividend to be paid.

Accepted Answer

A) True 
 B)False

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Past returns on an investment are [an indication | a guarantee] of future returns.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

Calculate the dividend yield on OPQ stock.Earnings per share are $2.75 and the quarterly dividend is 25 cents.The book value is $15.20 per share while the market value is $25.00.(Show all work.)

Accepted Answer

Dividend y

Question 7

Common stockholders are considered to be the residual owners of the company.

Accepted Answer

A) True 
 B)False

Question 8

Stock dividends are taxed at long-term capital gains rates.

Accepted Answer

A) True 
 B)False

Question 9

The higher a stock's beta,the riskier the stock.

Accepted Answer

A) True 
 B)False

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-When a bond is sold between coupon payment dates,the [buyer pays the seller | seller pays the buyer] for the accrued interest.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Zero coupon bonds will pay interest [at maturity | annually].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 12

To most stockholders,the main advantages of common stock investment are

Accepted Answer

A) attractive returns and active trading. 
B) attractive returns and voting rights. 
C) high dividends and active trading. 
D) high risk and active trading. 
E) high risk and attractive returns. 
A) attractive returns and active trading. 
B) attractive returns and voting rights. 
C) high dividends and active trading. 
D) high risk and active trading. 
E) high risk and attractive returns.

Question 13

Dividend reinvestment plans should be avoided because of their relatively high cost.

Accepted Answer

A) True 
 B)False

Question 14

____ stocks are really purchased as a gamble rather then because they have a proven history of good performance.

Accepted Answer

A) Blue-chip 
B) Growth 
C) Cyclical 
D) Defensive 
E) Speculative 
A) Blue-chip 
B) Growth 
C) Cyclical 
D) Defensive 
E) Speculative

Question 15

The callable feature of a bond protects the issuer when market interest rates are falling.

Accepted Answer

A) True 
 B)False

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Common stockholders usually receive one vote per [person | share].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Which of the following types of bonds are unsecured?

Accepted Answer

A) mortgage bond 
B) equipment trust certificate 
C) debenture bond 
D) agency bond 
E) all of these 
A) mortgage bond 
B) equipment trust certificate 
C) debenture bond 
D) agency bond 
E) all of these

Question 18

Which of the following is an advantage of owning growth stocks?

Accepted Answer

A) High and growing dividends 
B) High but declining dividends 
C) Low P/E ratio 
D) High potential for capital gains 
E) Tend to be solid blue-chip stocks 
A) High and growing dividends 
B) High but declining dividends 
C) Low P/E ratio 
D) High potential for capital gains 
E) Tend to be solid blue-chip stocks

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The lower the P/E ratio,the [less | more] confidence investors are said to have in the corporation.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Annual dividend per share divided by market price per share equals [total yield | dividend yield].

Accepted Answer

The answer of Choose the word or phrase in [...

Typically,the best time to invest in the stock market is when the market is very volatile.

The commonly cited price for a bond is usually its clean bond price.

Common stocks pay a guaranteed dividend each year.

Earnings per share (EPS)tell the stockholder the amount of dividend to be paid.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Past returns on an investment are [an indication | a guarantee] of future returns.

Calculate the dividend yield on OPQ stock.Earnings per share are $2.75 and the quarterly dividend is 25 cents.The book value is $15.20 per share while the market value is $25.00.(Show all work.)

Common stockholders are considered to be the residual owners of the company.

Stock dividends are taxed at long-term capital gains rates.

The higher a stock's beta,the riskier the stock.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Zero coupon bonds will pay interest [at maturity | annually].

To most stockholders,the main advantages of common stock investment are

Dividend reinvestment plans should be avoided because of their relatively high cost.

____ stocks are really purchased as a gamble rather then because they have a proven history of good performance.

The callable feature of a bond protects the issuer when market interest rates are falling.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Common stockholders usually receive one vote per [person | share].

Which of the following types of bonds are unsecured?

Which of the following is an advantage of owning growth stocks?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The lower the P/E ratio,the [less | more] confidence investors are said to have in the corporation.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Annual dividend per share divided by market price per share equals [total yield | dividend yield].

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 12: Investing in Stocks and Bonds

Typically,the best time to invest in the stock market is when the market is very volatile.

The commonly cited price for a bond is usually its clean bond price.

Common stocks pay a guaranteed dividend each year.

Earnings per share (EPS)tell the stockholder the amount of dividend to be paid.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Past returns on an investment are [an indication | a guarantee] of future returns.

Calculate the dividend yield on OPQ stock.Earnings per share are $2.75 and the quarterly dividend is 25 cents.The book value is $15.20 per share while the market value is $25.00.(Show all work.)

Common stockholders are considered to be the residual owners of the company.

Stock dividends are taxed at long-term capital gains rates.

The higher a stock's beta,the riskier the stock.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Zero coupon bonds will pay interest [at maturity | annually].

To most stockholders,the main advantages of common stock investment are

Dividend reinvestment plans should be avoided because of their relatively high cost.

____ stocks are really purchased as a gamble rather then because they have a proven history of good performance.

The callable feature of a bond protects the issuer when market interest rates are falling.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Common stockholders usually receive one vote per [person | share].

Which of the following types of bonds are unsecured?

Which of the following is an advantage of owning growth stocks?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The lower the P/E ratio,the [less | more] confidence investors are said to have in the corporation.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Annual dividend per share divided by market price per share equals [total yield | dividend yield].

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters