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Exam 14: Investing in Stock

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Question 31

Multiple Choice

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Earnings per share for a stock investment is calculated as:

A) after-tax income divided by the number of stockholders.
B) the number of stockholders divided by after-tax income.
C) after-tax income divided by the number of shares outstanding.
D) the number of shares outstanding divided by after-tax income.
E) none of these.

F) A) and E)
G) B) and D)

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Question 32

Multiple Choice

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

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

F) A) and B)
G) B) and C)

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Question 33

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A stock issued by a company that has a market capitalization of between $300 million and $2 billion is called a ____________ stock.

Matthew Boyd has saved $10,000 and wants to invest in common stock.Give examples of long-term techniques and short-term techniques that he could use to invest.Describe the difference between short-term and long-term investments.

The fundamental analysis theory is based on the assumption that a stock's intrinsic or real value is determined by the future earnings of the company.

Acme Widget,Inc.has 1,000 shareholders who own a total of one million shares of its common stock.The stock currently sells for $85 per share.The company earned $5 million after taxes.The annual dividend is $0.50 per share.The company has assets of $125 million and liabilities of $25 million.What is the P-E ratio?

A stock that sells for $1 or less per share is called a _____ stock.

No meaningful average for the earnings per share measure exists.

Which of the following is an electronic marketplace for buying and selling global stocks and securities?

The book value for a share of stock is determined by deducting all liabilities from the corporation's assets and dividing the remainder by the number of outstanding shares of common stock.

Ashley Riley wants to buy the stock of XYZ Company at a specified price or better.What type of order should she place?

Assume that you purchased 100 shares of a stock for $70 a share,that you did not receive any dividends,and that you sold your stock for $80 a share at the end of one year.What is the total return for your investment?

Masterworks Manufacturing has calculated its earnings per share as $2.50.If the corporation has 250,000 shares outstanding,what is the amount of after-tax income?

Jo Bower purchased 150 shares of stock for $24 a share and sold it for $30 a share.The commissions required to buy and sell her stock totaled $60 for each transaction.Assuming she received no dividends during the time she owned the stock,what is her total investment on the purchase of this stock?

In addition to expected earnings,fundamental analysis theorists consider: A.the financial strength of the company B.the type of industry the company is in C.new product development D.the economic growth of the overall economy

Sean Barber wants to invest in a stock that is relatively safe,suitable for conservative investors,and less speculative than other stocks.What type of stock best fits Sean's requirements?

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

On May 24,2015,Kurt Rogers 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 Kurt receive for this quarterly dividend?

The most common stock splits include:

Christopher Pratt just bought shares of common stock.Which one of the following is he entitled to based on his ownership of these shares?