0 Comments

1.The Retail Box has an historical P/CF ratio of 21.5. The current CFPS is $1.42 and the projected CFPS growth rate is 5.6 percent. The current EPS is $1.02. What is the expected price of this stock one year from now? (Points : 1)

$30.53
$32.24
$32.88
$34.11
$34.20

Question 2.2.The Satellite Shoppe has current sales per share of $7.15. The sales per share are expected to increase at an annual rate of 11 percent. The historical P/E ratio is 16.2 and the historical P/S ratio is 8.4. What is the expected price of this stock one year from now? (Points : 1)

$59.72
$66.67
$74.92
$115.18
$129.00

Question 3.3.Which one of the following states that investors cannot consistently earn positive excess returns? (Points : 1)

Market return hypothesis
Current market hypothesis
Efficient market hypothesis
Risk-return theory
Excess theory

Question 4.4.A securities dealer is a(n) ___________________. (Points : 1)

intermediary who arranges trades between a buyer and a seller
trader who buys and sells from his or her inventory
firm which charges a commission for arranging a transaction
person who buys securities for his or her own account on an exchange floor
trader who transacts business on behalf of a securities issuer

Question 5.5.PT Boats plans to pay a $2.40 a share dividend at the end of each of the next 2 years. At the end of year 3, it will pay a final liquidating dividend of $12 a share. After that, the company plans to close its doors permanently. What is the current value of this stock at a discount rate of 16 percent? (Points : 1)

$9.89
$10.26
$11.54
$12.47
$14.80

Question 6.6.When stocks are held in an index in proportion to their total company market value, the index is ____________. (Points : 1)

dollar-weighted
front-weighted
back-weighted
price-weighted
value-weighted

Question 7.7.Long Life Floors just paid an annual dividend of $0.82 a share and plans on increasing future dividends by 2 percent annually. The discount rate is 15 percent. What will the value of this stock be 5 years from today? (Points : 1)

$6.96
$7.04
$7.10
$7.18
$7.25

Question 8.8.In an efficient market, stocks with similar risks will: (Points : 1)

have the same market price.
pay similar dividends.
yield the market rate of return.
produce abnormal returns.
have similar rates of return.

Question 9.9.The current book value per share of B.L. Black & Sons is $5.65 and the required return on the stock is 16 percent. The firm expects earnings per share of $1.85 next year with annual earnings growth of 4.5 percent. What is the current market value of this stock? (Points : 1)

$9.16
$10.91
$13.88
$18.18
$20.30

Question 10.10.Amy uses two approaches to trading stocks. First, she trades on what she believes is a repetitive pattern as seen in Delta Co’s historical prices. Secondly, she analyzes the financial statements of The Atwater Co. to compute changes in the return on equity as a predictor of future stock prices for that firm. She trades based on both strategies. Amy earns excess profits on her return on equity strategy but not on her historical prices strategy. This suggests that the market is at least _____ efficient but less than _____ efficient. (Points : 1)

weak-form; mild-form
mild-form; semistrong-form
weak-form; semistrong-form
semistrong-form; full-form
semistrong-form; strong-form

Order Solution Now

Categories: