Question 1

The rapid expansion phase of an industry is characterized by

Accepted Answer

A)  extreme sensitivity to interest rates and other economic factors. 
B)  high returns and relatively low risks. 
C)  willingness of investors to buy almost any stock associated with the industry. 
D)  many decades of sustained above average growth. 
A)  extreme sensitivity to interest rates and other economic factors. 
B)  high returns and relatively low risks. 
C)  willingness of investors to buy almost any stock associated with the industry. 
D)  many decades of sustained above average growth.

Question 2

The income statement indicates how successfully a company has utilized its assets.

Accepted Answer

A) True 
 B)False

Question 3

Quick Cement has a return on assets of 8%. If it has $1.5 million in total assets and a total asset turnover of 2, it follows that the firm must have a net profit margin of

Accepted Answer

A)  4%. 
B)  6%. 
C)  8%. 
D)  12%. 
A)  4%. 
B)  6%. 
C)  8%. 
D)  12%.

Question 4

A company has sales of $640,000, net profit after taxes of $23,000, and a total asset turnover of 2.5. What is the return on assets?

Accepted Answer

A)  3.6% 
B)  4.5% 
C)  8.1% 
D)  9.0% 
A)  3.6% 
B)  4.5% 
C)  8.1% 
D)  9.0%

Question 5

High dividend payout ratios are more of a concern to analysts than low payout ratios.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following are considered in the company analysis phase of a fundamental analysis of a firm?
I. the composition and growth in sales
II. the capital structure of the firm
III. the outlook of the national economy
IV. the composition and liquidity of the company's assets

Accepted Answer

A)  I and II only 
B)  I, II and IV only 
C)  II and IV only 
D)  I, II, III and IV 
A)  I and II only 
B)  I, II and IV only 
C)  II and IV only 
D)  I, II, III and IV

Question 7

Ratio analysis is the study of the relationships between various financial statement accounts.

Accepted Answer

A) True 
 B)False

Question 8

The government has an expansionary economic policy when it

Accepted Answer

A)  increases taxes. 
B)  increases government spending. 
C)  promotes rising interest rates. 
D)  limits exports of goods and services. 
A)  increases taxes. 
B)  increases government spending. 
C)  promotes rising interest rates. 
D)  limits exports of goods and services.

The rapid expansion phase of an industry is characterized by

The income statement indicates how successfully a company has utilized its assets.

Quick Cement has a return on assets of 8%. If it has $1.5 million in total assets and a total asset turnover of 2, it follows that the firm must have a net profit margin of

A company has sales of $640,000, net profit after taxes of $23,000, and a total asset turnover of 2.5. What is the return on assets?

High dividend payout ratios are more of a concern to analysts than low payout ratios.

Which of the following are considered in the company analysis phase of a fundamental analysis of a firm? I. the composition and growth in sales II. the capital structure of the firm III. the outlook of the national economy IV. the composition and liquidity of the company's assets

Ratio analysis is the study of the relationships between various financial statement accounts.

The government has an expansionary economic policy when it

The Investment Environment

Securities Markets and Transactions

Investment Information and Securities Transactions

Return and Risk

Modern Portfolio Concepts

Common Stocks

Stock Valuation

Market Efficiency and Behavioral Finance

Fixed-Income Securities

Bond Valuation

Mutual Funds and Exchange-Traded Funds

Managing Your Own Portfolio

Options: Puts and Calls

Futures Markets and Securities

Filters

Exam 7: Analyzing Common Stocks

The rapid expansion phase of an industry is characterized by

The income statement indicates how successfully a company has utilized its assets.

Quick Cement has a return on assets of 8%. If it has $1.5 million in total assets and a total asset turnover of 2, it follows that the firm must have a net profit margin of

A company has sales of $640,000, net profit after taxes of $23,000, and a total asset turnover of 2.5. What is the return on assets?

High dividend payout ratios are more of a concern to analysts than low payout ratios.

Which of the following are considered in the company analysis phase of a fundamental analysis of a firm? I. the composition and growth in sales II. the capital structure of the firm III. the outlook of the national economy IV. the composition and liquidity of the company's assets

Ratio analysis is the study of the relationships between various financial statement accounts.

The government has an expansionary economic policy when it

The Investment Environment

Securities Markets and Transactions

Investment Information and Securities Transactions

Return and Risk

Modern Portfolio Concepts

Common Stocks

Stock Valuation

Market Efficiency and Behavioral Finance

Fixed-Income Securities

Bond Valuation

Mutual Funds and Exchange-Traded Funds

Managing Your Own Portfolio

Options: Puts and Calls

Futures Markets and Securities

Filters