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WorksheetsFINAL EXAM Review!!
Total questions: 24
Worksheet time: 14mins
Since the end of World War II, stocks have returned almost 10 percent a year.
False
True
A proxy is a legal form that lists the issues to be decided at a stockholders' meeting and requests that stockholders transfer their voting rights to some individual or individuals.
True
False
The record date is the date that the actual dividend payment is made to stockholders.
False
True
A stock split is a procedure in which a stockholder's common stock is exchanged for preferred stock.
True
False
Preferred stock is often referred to as a middle investment, because it represents an investment midway between common stock and corporate bonds.
True
False
A blue chip stock is too speculative for most investors.
False
True
A stock that pays higher-than-average dividends is called an income stock.
True
False
A cyclical stock is one that follows the business cycle of advances and declines in the economy.
True
False
A large cap stock is a stock issued by a corporation that has capitalization of more than $10 billion.
True
False
A defensive stock is a stock that typically sells for less than $5.
False
True
Because of the need for secrecy, most corporations do not supply financial information about their company on their websites.
True
False
By using the internet, it is possible to find market price quotations, but more detailed financial information about a corporation is unavailable to the average investor.
False
True
It is common for websites like Morningstar and Reuters to charge fees for their more detailed financial information.
False
True
If a corporation's earnings decline, generally the stock's price usually increases.
False
True
An increase in a corporation's earnings per share is a healthy sign.
True
False
Stocks issued by large corporations in mature industries often have high P-E ratios.
True
False
No meaningful average for the earnings per share measure exists.
True
False
The total return on a stock is equal to the current market value of the stock minus the investor's purchase price.
False
True
The annualized holding period yield calculation takes into account the time the investment is held.
True
False
The book value for a share of stock is determined by deducting all liabilities from the corporation's assets and dividing the remainder by the number of outstanding shares of common stock.
True
False
A short term investment is one that will mature in (a) year or less
An intermediate term or goal is one that matures in one to (a) years.
A good rule of thumb is to limit consumer credit payments to no more than (a) percent of your net (after tax) income.
Eric Patterson earns $80,000 a year. His monthly expenses total $4,500. What is the minimum amount of money that he should set aside in an emergency fund?
(a)
