Which one of the following statements is correct?
A. All secondary markets are dealer markets.
B. All secondary markets are broker markets.
C. All stock trades between existing shareholders are secondary market transactions.
D. All stock transactions are secondary market transactions.
E. All Dutch auction sales are secondary market transactions.
Sunshine Rentals has a debt-equity ratio of 0.84. Return on assets is 7.9 percent, and
total equity is $438,000. What is the net income?
A. $41,147.09
B. $54,311.29
C. $63,667.68
D. $48,887.02
E. $50,458.95
The Cookie Shops purchases are equal to 70 percent of the following months sales. The
accounts payable period for purchases is 30 days while all other expenditures are paid
in the month they are incurred. Assume each month has 30 days. The company has
compiled the following information.
What is the total amount of the firms disbursements for the month of May?
A. $5,990
B. $6,170
C. $6,410
D. $6,571
E. $6,880
In a general partnership, each partner is personally liable for:A. the partnership debts
that he or she created.
B. his or her proportionate share of all partnership debts regardless of which partner
incurred that debt.
C. the total debts of the partnership, even if he or she was unaware of those debts.
D. the debts of the partnership up to the amount he or she invested in the firm.
E. all personal and partnership debts incurred by any partner, even if he or she was
unaware of those debts.
You are given the exchange rate between the U.S. dollar and the Canadian dollar. You
are also given the exchange rate between the U.S. dollar and the Mexican peso. What is
the name given to the Canadian dollar per Mexican peso exchange rate derived from the
information that was provided?
A. Swap rate
B. Depositary rate
C. Forward rate
D. London Interbank rate
E. Cross-rate
Mary owns a risky stock and anticipates earning 16.5 percent on her investment in that
stock. Which one of the following best describes the 16.5 percent rate?
A. Expected return
B. Real return
C. Market rate
D. Systematic return
E. Risk premium
Which one of the following will reduce the disbursement float of a firm?
A. Mailing a check from a very remote location
B. Mailing an unsigned check so that it must be returned for a signature
C. Paying a loan payment at the bank rather than mailing a check to the bank
D. Requiring that all checks be held one day before mailing so they can be reviewed by
a manager
E. Writing checks on a zero-balance account rather than on the master account
The Outpost currently sells short leather jackets for $349 each. The firm is considering
selling long coats also. The coats would sell for $689 each and the company expects to
sell 900 a year. If the firm decides to carry the long coat, management feels that the
sales of the short jacket will decline from 1,420 to 1,265 units. Variable costs on the
jacket are $210 and $445 on the long coat. The fixed costs for this project are $42,000,
depreciation is $11,000 a year, and the tax rate is 33 percent. What is the projected
operating cash flow for this project?
A. $108,187
B. $111,264
C. $112,212
D. $119,672
E. $120,418
Last year, a firm earned $31,200 in net income on sales of $217,600. The company paid
$8,500 in dividends. What is the dividend payout ratio?
A. 3.45 percent
B. 4.71 percent
C. 16.25 percent
D. 22.85 percent
E. 27.24 percent
Inside quotes are defined as the:
A. bid and asked prices presented by NYSE DMMs.
B. last bid and asked price offered prior to the market close.
C. lowest asked and highest bid offers.
D. daily opening bid and asked quotes.
E. last traded bid and asked prices.
A project has the following cash flows. What is the payback period?
A. 2.38 years
B. 2.49 years
C. 2.60 years
D. 3.01 years
E. 3.33 years