{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

2011_FM1_PraticeQuiz

# 2011_FM1_PraticeQuiz - PRACTICE QUIZ 1 One way often used...

This preview shows pages 1–3. Sign up to view the full content.

PRACTICE QUIZ 1. One way often used to insure that management decisions are in the best interest of the stockholders is to a) Threaten to fire managers who are seen as not performing adequately. b) Remove management's perquisites. c) Tie management compensation to the performance of the company's common stock price. d) Tie management compensation to the level of earnings per share. 2. In comparing an ordinary annuity and an annuity due, which of the following is true: 3. The future value of a dollar ______ as the interest rate increases and ______ the farther in the future an initial deposit is to be received. 4. What is the rate of return on an investment of \$124,090 if the company expects to receive \$10,000 per year for the next 30 years? 5. The ______ is a statistical measure of the relationship between series of numbers. a) coefficient of variation b) standard deviation c) correlation d) probability 6. The goal of an efficient portfolio is to 7. Perfectly ______ correlated series move exactly together and have a correlation coefficient of ______, while perfectly ______ correlated series move exactly in opposite directions and have a correlation coefficient of ______.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
8. Sopp Accounting Services has an outstanding issue of 1,000 shares preferred stock with a \$100 par value, an 8 percent annual dividend, and 5,000 shares of common stock outstanding. If the stock is cumulative and the board of directors has passed the preferred dividend for the last two years, how much must preferred stockholders be paid prior to paying dividends to common stockholders? 9. On December 31, 1998, the Bradshaw Corporation had \$485,000 as an ending balance for its retained earnings account. During 1999, the corporation declared a \$3.50/share dividend to its stockholders. The Bradshaw Corporation has 35,000 shares of common stock outstanding. When the books were closed for 1999 year end, the corporation had a final retained earnings balance of \$565,000. What was the net profit earned by Bradshaw Corporation during 1999?
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 6

2011_FM1_PraticeQuiz - PRACTICE QUIZ 1 One way often used...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online