Which one of the following is the name given to a registration of securities under SEC
415 which permits a firm to issue the securities over a two-year period?
A. Seasoned registration
B. Negotiated registration
C. Shelf registration
D. Extended registration
E. Delayed registration
You own a $222,000,000 portfolio that is invested in Stocks A and B. The portfolio beta
is equal to the market beta. Stock A has an expected return of 18.7 percent and has a
beta of 1.42. Stock B has a beta of 0.88. What is the value of your investment in Stock
A?
A. $38,600
B. $42,333
C. $44,500
D. $49,333
E. $47,200
A $36,000 portfolio is invested in a risk-free security and two stocks. The beta of Stock
A is 1.29 while the beta of Stock B is 0.90. One-half of the portfolio is invested in the
risk-free security. How much is invested in Stock A if the beta of the portfolio is 0.58?
A. $6,000
B. $9,000
C. $12,000
D. $15,000
E. $18,000
Kays House of Sound sells 520 musical instruments a year at an average price per
instrument of $580. All sales are credit sales with terms of 2/10, net 25. Hogans has
found that 78 percent of its customers take advantage of the discounted price. What is
the amount of the firms average accounts receivable?
A. $9,560
B. $10,990
C. $11,280
D. $12,440
E. $12,620
Over the last four years, a stock has had an arithmetic average return of 8.8 percent.
Three of those four years produced returns of 16.3 percent, 10.2 percent, and -14.1
percent, respectively. What is the geometric average return for this four-year period?
A. 7.83 percent
B. 8.39 percent
C. 8.67 percent
D. 9.40 percent
E. 9.97 percent
The value of a bond is dependent on the:
A. coupon rate and the current yield.
B. coupon rate and the yield to maturity.
C. current yield and the yield to maturity.
D. coupon rate but neither the current yield nor the yield to maturity.
E. yield to maturity but neither the current yield nor the coupon rate.
You are planning a trip to the UK and plan on spending 3,800 pounds. How many
dollars will this trip cost you if the currency per U.S. dollar is 0.6789 pound?
A. $2,579.82
B. $3,892.16
C. $5,597.29
D. $5,890.01
E. $6,044.04
You purchase a bond with a coupon rate of 7 percent, semiannual coupons, and a clean
price of $1,011. If the next coupon payment is due in four months, what is the invoice
price?
A. $1,022.67
B. $1,029.36
C. $1,031.00
D. $1,037.67
E. $1,044.33
Sara is investing $1,000 today. Which one of the following will increase the future
value of that amount?
A. Shortening the investment time period.
B. Paying interest only on the principal amount.
C. Paying simple interest rather than compound interest.
D. Paying interest only at the end of the investment period rather than throughout the
investment period.
E. Increasing the interest rate.
When issuing securities, which of the following can occur prior to receiving the
approval by the SEC of a registration statement?I. Oral offer to buy sharesII. Written
offer to buy sharesIII. Final determination of the offer priceIV. Distribution of a
preliminary prospectus
A. I only
B. III only
C. III and IV only
D. I and IV only
E. None of the listed activities can occur until after the SEC approval is received.
Granger Corp. stock currently sells for $48.29 per share. The market requires a 13
percent return on the firms stock. If the company maintains a constant 5.5 percent
growth rate in dividends, what was the most recent annual dividend per share paid on
the stock?
A. $3.43
B. $3.57
C. $3.90
D. $4.15
E. $4.36
The security market line is a linear function that is graphed by plotting data points
based on the relationship between which two of the following variables?
A. Risk-free rate and beta
B. Market rate of return and beta
C. Market rate of return and the risk-free rate
D. Risk-free rate and the market rate of return
E. Expected return and beta
Which one of the following parties can sell shares of ABC stock in the primary market?
A. ABC company
B. Any corporation, other than the ABC company
C. Institutional shareholder
D. Private individual shareholder
E. Any of these