Question 1

If someone buys a bond for less than $1,000, that person will receive less annual interest.

Accepted Answer

A) True 
 B)False

Question 2

Fidelity Investments is selling a real estate income mutual fund for $10.94 per share. The fund charges a load of 2.5%. What is the offer price?

Accepted Answer

A) $10.94 
B) $10.67 
C) $11.21 
D) $11.48 
E) None of these 
A) $10.94 
B) $10.67 
C) $11.21 
D) $11.48 
E) None of these

Question 3

Each time the stock of a company trades on the exchange, the company receives additional money.

Accepted Answer

A) True 
 B)False

Question 4

In dollars, what was yesterday's close?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \
\hline \text { Action 11\quad 22 } & & 10 & 102 & + 1.25 \
\hline
\end{array}$$

Accepted Answer

The answer of In dollars, what was yesterday's close?
 \[\begin{array}...

Question 5

Norm Cota bought 600 shares of ATL stock at $32 per share. Assume a commission of 5% of the purchase price. What is the total cost to Norm?

Accepted Answer

600 × $32 = $19,200;

Question 6

The stock of VIC Corporation is trading at $39.63. The price-earnings ratio is 16 times earnings. The earnings per share for VIC Corporation are:

Accepted Answer

A) $2.84 
B) $2.48 
C) $4.96 
D) $6.34 
E) None of these 
A) $2.84 
B) $2.48 
C) $4.96 
D) $6.34 
E) None of these

Question 7

What interest rate is the bond paying?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \
\hline \text { Action 11\quad 22 } & & 10 & 102 & + 1.25 \
\hline
\end{array}$$

Accepted Answer

The answer of What interest rate is the bond paying?
...

Question 8

A bond that closed today at 94 down 2 closed yesterday in dollars at:

Accepted Answer

A) $960 
B) $940 
C) $950 
D) $930 
E) None of these 
A) $960 
B) $940 
C) $950 
D) $930 
E) None of these

Question 9

Is this bond trading at a premium or a discount?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \
\hline \text { HWL } 8\frac {\text {  1}} { \text {2 } }\quad23 & & 12 & 67.75 & + 7 \
\hline
\end{array}$$

Accepted Answer

The answer of Is this bond trading at a premium...

Question 10

Disney Stock currently sells for $114.09 per share with a price-earnings ratio of 17.82. What does Disney earn per share?

Accepted Answer

$114.09/17

Question 11

Match the following terms with their definitions.
-Decimals

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 12

A mutual fund is made up of

Accepted Answer

A) Many stocks 
B) 10 stocks 
C) 100 stocks 
D) 500 stocks 
E) None of these 
A) Many stocks 
B) 10 stocks 
C) 100 stocks 
D) 500 stocks 
E) None of these

Question 13

Assume that a bond sells at 98 3/4 (pays 14% interest). Calculate the bond yield (to nearest whole percent).

Accepted Answer

14% × $1,000 = $140;

Question 14

The stock of Morris Co. is trading at $32.25. The price-earnings ratio is 14 times earnings. Can you calculate the earnings per share (to the nearest cent)for Morris Co.?

Accepted Answer

The answer of The stock of Morris Co. is trading...

Question 15

Assume that a bond sells at 98 ½ (pays 15% interest). Calculate the bond yield (to nearest tenth percent).

Accepted Answer

Interest = .15 × $1,

Question 16

Assume $1.19 EPS. What was the sales volume?
 $$\begin{array} { | c | c | c | c | c | c | c | c | c | } 
\hline  { \text { 52 Weeks } } & \begin{array} { c } 
\text { Stock } \
\text { (Sym) }
\end{array} & \text { DIV } & \begin{array} { c } 
\text { YLD } \
\%
\end{array} & \text { PE } & \begin{array} { c } 
\text { Volume } \
( 100 \text { 's } )
\end{array} & \text { Close } & \begin{array} { c } 
\text { Net } \
\text { Change }
\end{array} \
\hline \text { HI } \mid\text { LO } & & & & & & & \
\hline 34\mid 21.56 & \text { Kellogg K } & 1.01 & & ? & 10103 & 32.13 & - 0.07 \
\hline
\end{array}$$

Accepted Answer

The answer of Assume $1.19 EPS. What was the sales...

Question 17

Match the following terms with their definitions.
-Bond premium

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 18

The stock of Beatrice Co. is trading at $38.50. The price-earnings ratio is 9 times earnings. Calculate the earnings per share (to the nearest cent)for Beatrice Co.

Accepted Answer

The answer of The stock of Beatrice Co. is trading...

Question 19

Jones Company earns $6 per share. Today the stock is selling at $48. The company pays an annual dividend of $.83. Calculate (A)the price-earnings ratio and (B)the yield on the stock (to the nearest tenth percent).

Accepted Answer

A. $48/$6

Question 20

Assume 25,000 shares of cumulative preferred at $2.50 per share and 50,000 shares of common. Find the following:
 $$\begin{array} { | l | l | l | l | } 
\hline & 2016 & 2017 & 2018 \
\hline \text { Dividend } & & & \
\text { Paid } & \$ 9,000 & \$ 0 & \$ 185,000 \
\hline \text { Preferred } & & & \
\text { Dividend } & \text { A } & \text { B } & \text { C } \
\hline \text { Common } & & & \
\text { Dividend } & \text { D } & \text { E } & \text { F } \
\hline
\end{array}$$

Accepted Answer

A. $9,000; B. $0; C.

Exam 21: Stocks, Bonds, and Mutual Funds

If someone buys a bond for less than $1,000, that person will receive less annual interest.

Fidelity Investments is selling a real estate income mutual fund for $10.94 per share. The fund charges a load of 2.5%. What is the offer price?

Each time the stock of a company trades on the exchange, the company receives additional money.

In dollars, what was yesterday's close? Bond Current Yield Vol Close Net Change Action 1122 10 102 +1.25

Norm Cota bought 600 shares of ATL stock at $32 per share. Assume a commission of 5% of the purchase price. What is the total cost to Norm?

The stock of VIC Corporation is trading at $39.63. The price-earnings ratio is 16 times earnings. The earnings per share for VIC Corporation are:

What interest rate is the bond paying? Bond Current Yield Vol Close Net Change Action 1122 10 102 +1.25

A bond that closed today at 94 down 2 closed yesterday in dollars at:

Is this bond trading at a premium or a discount? Bond Current Yield Vol Close Net Change HWL 823 12 67.75 +7

Disney Stock currently sells for $114.09 per share with a price-earnings ratio of 17.82. What does Disney earn per share?

Match the following terms with their definitions. -Decimals

A mutual fund is made up of

Assume that a bond sells at 98 3/4 (pays 14% interest). Calculate the bond yield (to nearest whole percent).

The stock of Morris Co. is trading at $32.25. The price-earnings ratio is 14 times earnings. Can you calculate the earnings per share (to the nearest cent)for Morris Co.?

Assume that a bond sells at 98 ½ (pays 15% interest). Calculate the bond yield (to nearest tenth percent).

Assume $1.19 EPS. What was the sales volume? 52 Weeks Stock (Sym) DIV YLD \% PE Volume (100 's ) Close Net Change HI \mid LO 34\mid21.56 Kellogg K 1.01 ? 10103 32.13 -0.07

Match the following terms with their definitions. -Bond premium

The stock of Beatrice Co. is trading at $38.50. The price-earnings ratio is 9 times earnings. Calculate the earnings per share (to the nearest cent)for Beatrice Co.

Jones Company earns $6 per share. Today the stock is selling at $48. The company pays an annual dividend of $.83. Calculate (A)the price-earnings ratio and (B)the yield on the stock (to the nearest tenth percent).

Assume 25,000 shares of cumulative preferred at $2.50 per share and 50,000 shares of common. Find the following: 2016 2017 2018 Dividend Paid \ 9,000 \ 0 \ 185,000 Preferred Dividend A B C Common Dividend D E F

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

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Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

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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

Depreciation

Inventory and Overhead

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Business Statistics

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