50. Which one of the following is a general characteristic of a securities broker?
Trades from his or her own inventory
Trades only foreign securities
Trades listed securities in an auction market
Trades electronically from any geographic location
42. Nofal Corporation will pay a $3.65 per share dividend next year. The
company pledges to increase its dividend by 5.1 percent per year, indefinitely.
If you require a return of 12 percent on your investment, how much will you pay
for the comp
45. Davis, Inc., currently has an EPS of $2 and an earnings growth rate of 8
percent. The benchmark PE ratio is 22.
What is the target share price in 5 years? (Do not round intermediate
calculations. Round your answer to 2 decimal places (e.g.,
19. The Brown Jug has compiled the following information:
2014 operating cash flow = $198,500 - $27,100 - $128,300 - $1,000 = $42,100
20. The December 31, 2013, balance sheet of Suzette's Market showed longterm debt of $638,100 and the December 31, 2014,
36. Which one of the following terms refers to a bond's rate of return that is
required by the marketplace?
Yield to maturity
37. A protective covenant:
protects the borrower from unscrupulous practices by
31. The systematic risk principle states that the expected return on a risky asset
depends only on which one of the following?
32. Which one of the following best exemplifies
7. Nu Tek is comprised of four separate operating divisions. For this year, the firm
has decided to allocate capital funds using a soft rationing approach. Which one
of the following applies to this situation?
Division managers will be limited to acceptin
23. The cost of capital for a project depends primarily on which one of the
24. Birds of a Feather has 10-year bonds outstanding that carry an annual
coupon of 8 percent. The bonds mature in 7 years and are currently priced at 110
percent of fa
14. On June 22, Roy's Welding Shop purchased $3,300 worth of goods. The
terms of the sale were 1/7, net 21. What is the effective annual rate of interest for
the credit period for this sale?
Days of credit granted = 21 - 7 = 14 days; Periods per year = 36
1. Jim just deposited $13,000 into his account at Traditions Bank. The bank will
pay 1.3 percent interest, compounded annually, on this account. How much
interest on interest will he earn over the next 15 years?
Interest on interest = $13,000 (1 + 0.013)
26.Which one of the following is a key provision of the Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005?
27.Which one of the following statements is correct?
A prepack is a plan of liquidation used to distribute a firm's assets.