Final_exam_Spring-2011 (2) MILONI 1st one

Final_exam_Spring-2011 (2) MILONI 1st one - UNVA FINA 523...

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UNVA FINA 523 PERSONAL FINANCIAL ADVISING Final - EXAM – spring 2011 1. DOWN LOAD THE WORD FILE 2. ANSWER PROBLEMS . Total Points = 126 A=113, B = 101, C = 88 3. SAVE IT and Email it to: or 4. Use the last page to record your answers. 1) Lavon has his money invested into an asset that has averaged the following returns the last three years: +22%, -8%, +13%. Most likely what type of asset is he invested in? A) Corporate bonds B) Income producing Real Estate C) Gold coins D) Common stock 2) You have just recently started your investment activities for retirement. You were happy to learn from your broker that your investor's account balance would be insured for up to $500,000 through the ________ in the event their brokerage firm goes bankrupt. A) FDIC B) FSLIC C) NCUA D) SIPC E) FTC 3) The net income of the firm is $4 million dollars. The firm will pay $500,000 in dividends to the preferred shareholders. There are currently 1 million shares of common stock outstanding. What are the earnings per share for this firm? A) $4.00 B) $3.50 C) $4.50 D) None of the above are correct 4) What could possibly happen if you sell a bond before the maturity date? A) You could have a capital gain. B) You could have a capital loss. C) You could break even with the price you paid for the bond. D) All of the above are correct. E) Both A and C are correct. 1
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important to consider? A) Load B) Net Asset Value C) Expense ratio D) All of the above are correct E) Both A and C are correct. 6) To be eligible for Social Security benefits, you receive one credit for every $1,050 in wages that you earn, up to 4 credits per year. How many total credits do you need to qualify for benefits? A) 4 B) 20 C) 30 D) 40 7) The first step in estate planning is to choose your heirs and what they will receive. Answer: True or FALSE 8) Suppose that immediately after graduation you invested $3,000 each year for 10 years and nothing thereafter. You earn 10% on this money. Which of the following is closest to the amount of money you would you have on deposit when you retired in 40 years (30 years after the deposits stopped)? A) $47,812 B) $523,482 C) $834,295 D) $1,327,777 9) Tran purchased a house for a rental property for $100,000 five years ago. During the time he owned this rental, his net rent was a total of $4,000. He just sold the property for $120,000. What was his average annual return on this investment? A) 4.0% B) 4.8% C) 24% D) Not enough information available. 10) Zippo Mutual Fund is one of your best performers. It just announced a year-end distribution of $3.50 per share in capital gains and $1.50 in dividends. Assuming the NAV increased from $29.50 to $33.50, calculate your total annual return? A) 30.51%
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This note was uploaded on 08/06/2011 for the course ACCT 400 taught by Professor Heler during the Spring '11 term at Ecole Polytechnique Fédérale de Lausanne.

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Final_exam_Spring-2011 (2) MILONI 1st one - UNVA FINA 523...

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