You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of $$3 in the upcoming year while stock Y is expected to pay a dividend of$$ 4 in the upcoming year. The expected growth rate of dividends for both stocks is 7%. The intrinsic value of stock X: Select one:

If a firm's sales decrease by 15%, and profits decrease by 20% during a recession, the firm's operating leverage (DOL) is. Select one:

Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Torque Corporation has a beta of 1.2. What is the return you should require on Torque's stock? Select one:

Sure Tool Company is expected to pay a dividend of $$2 in the upcoming year. The risk-free rate of return is 4$$ 22 a year from now. The beta of Sure Tool Company's stock is 1.25. The market's required rate of return on Sure's stock is. Select one:

In regard to moving averages, it is considered to be a signal when market price breaks through the moving average from. Select one:

Which of the following would be inconsistent with an efficient market? Select one:

Which of the following is most closely associated with the terms "primary trend," "intermediate trend," and "short-term trend"? Select one:

Which of the following is not a part of the candlestick chart? Select one:

A price range at which technicians would expect a substantial increase in the demand for a stock is called. Select one:

A bond is a bond where the bondholder has the right to cash in the bond before maturity at a specified price after a specific date. Select one:

The measure of the average rate of return an investor will earn if the investor buys the bond now and holds until maturity is the. Select one:

Consider a 5-year bond with a 10% coupon that has a present yield to maturity of 8%. If interest rates remain constant, one year from now, the price of this bond will be. Select one:

The measure used to calculate the present value of a bond is the. Select one:

A 6.5 percent coupon bond issued by the State of California sells for $$1,000. What coupon rate on a corporate bond selling at$$ 1,000 par value would produce the same after-tax return to the investor as the municipal bond if the investor is in the 26 percent marginal tax bracket? Select one:

Calculate the yield to maturity of a zero-coupon bond with a face value of $$1,000, maturing in 10 years, and selling for a price of$$ 628.72. Select one:

Using semi-annual compounding, a 15-year zero-coupon bond that has a par value of $1,000 and a required return of 8% would be priced at approximately. Select one:

If a 7% coupon bond is trading for $975.00, it has a current yield of. Select one:

You write one JNJ February 70 put for a premium of $5. Ignoring transactions costs, what is the break-even price of this position? Select one:

In a futures contract, the futures price is. Select one:

The maximum loss a buyer of a stock call option can suffer is equal to. Select one:

An American put option can be exercised. Select one:

A trader who has a ...... position in wheat futures believes the price of wheat will ...... in the future. Select one:

The buyer of a futures contract is said to have a position, and the seller of a futures contract is said to have a position in futures. Select one:

The riskiest capital market security is. Select one.

Which of the following portfolio construction methods starts with security analysis? Select one.

The ____ value of a bond is the amount that the issuer must pay at maturity. Select one.

Which one of the following terms best describes Eurodollars? Select one.

Other things being equal, a low ____ would be most consistent with a relatively high growth rate of firm earnings. Select one.

Which of the following are not examples of defensive industries? Select one.

____ is equal to common shareholder’s equity divided by common shares outstanding. Select one.

Assume the U.S government was to decide to increase the budget field. Holding all else constant, this will cause ____ to increase. Select one.

According to Michael Porter, there are five determinants of competition. An example of is the threat new competitors pose to existing competitors in an industry. Select one.

If interest rates increase, business investment expenditures are likely to ____, and consumer durable expenditures are likely to ____. Select one.

Dividend discount models and P/E ratios are used by ____ to try to find mispriced securities. Select one.

A firm has a higher asset turnover ratio than the industry average, which implies. Select one.

According to Michael Porter, there are five determinants of competition. An example of is when a buyer purchases a large fraction of an industry's output and can demand price concessions. Select one.

According to Michael Porter, there are five determinants of competition. An example of is when competitors seek to expand their share of the market. Select one.

Fly Boy Corporation is expected to have EBIT of $$800k this year. Fly Boy Corporation is in the 30$$ 52,000 in depreciation, will make $$86,000 in capital expenditures, and will have a$$ 16,000 increase in net working capital this year. What is Fly Boy's FCFF? Select one.

Zero had a FCFE of $4.5M last year and has 2.25M shares outstanding. Zero's required return on equity is 10%, and WACC is 8.2%. If FCFE is expected to grow at 8% forever, the intrinsic value of Zero's shares is. Select one.

Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Torque Corporation has a beta of 1.2. What is the intrinsic value of Torque's stock? Select one.

Sales Company paid a $1.00 dividend per share last year and is expected to continue to pay out 40% of earnings as dividends for the foreseeable future. If the firm is expected to generate a 10% return on equity in the future, and if you require a 12% return on the stock, the value of the stock is. Select one.

If a firm's sales decrease by 15%, and profits decrease by 20% during a recession, the firm's operating leverage (DOL) is. Select one.

Technical analysis reflects the idea that stock prices. Select one.

Which of the following is not a part of the candlestick chart? Select one.

Which of the following is most closely associated with the terms "primary trend" "intermediate trend" and "short-term trend"? Select one.

Technicians believe that an industry or stock that is outperforming the market will tend to. Select one.

Which of the following terms represents an upper price limit for a stock, based on the quantity of willing sellers? Select one.

The ____ is used to calculate the present value of a bond. Select one.

A bond is a bond where the bondholder has the right to cash in the bond before maturity at a specified price after a specific date. Select one.

Of the following investments, is (are) considered the safest. Select one.

Consider a 5-year bond with a 10% coupon that has a present yield to maturity of 8%. If interest rates remain constant, one year from now, the price of this bond will be. Select one.

Calculate the yield to maturity of a zero-coupon bond with a face value of $$1000, maturing in 15 years and selling for a price of$$ 525.75. Select one.

A coupon bond that pays interest annually has a par value of $1,000, matures in five years, and has a yield to maturity of 10%. The intrinsic value of the bond today will be ….. if the coupon rate is 12%. Select one:

A 6.5 percent coupon bond issued by the State of California sells for $$1,000. What coupon rate on a corporate bond selling at$$ 1,000 par value would produce the same after-tax return to the investor as the municipal bond if the investor is in the 26 percent marginal tax bracket? Select one:

A coupon bond that pays interest annually has a par value of $1,000, matures in five years, and has a yield to maturity of 10%. The intrinsic value of the bond today will be ……… if the coupon rate is 7%. Select one:

The potential loss for a writer of a naked call option on a stock is Select one:

A trader who has a …… position in wheat futures believes the price of wheat will …… in the future. Select one:

The process of marking to market Select one:

An American call option allows the buyer to Select one:

You purchase one JNJ 75 call option for a premium of $3. Ignoring transaction costs, the break-even price of the position is Select one:

A trader who has a …… position in gold futures wants the price of gold to ….. in the future. Select one:

Mistakes in investment include: Select one:

Which of the following valuation methods is the most appropriate for SOE equalization? Select one:

In Dow Theory, the secondary wave (trend) normally lasts: Select one:

Stock valuation is the determining the intrinsic value or fair value of stock to serve the following tasks: Select one:

Which of the following statements is true about company pricing? Select one:

Based on perspective: Compared to the value of other firms. Which pricing method do we have? Select one:

Company X earns 10 billion VND in 2007. On Jan 1, 2007 X has 1 million outstanding shares. On July 1, 2007, X issues 100,000 additional common shares at the price of 20,000 VND/share. Calculate EPS? Select one:

Which of the following statements are out of Technical Analysis? Select one:

In technical analysis, which price is most important? Select one:

An inversion head and shoulders pattern is indicative: Select one:

What is the intrinsic value of a company's stock if dividends are expected to grow at 5%, last year's dividend was $1, and investors's required rate of return for this stock is 10%? Select one:

An analyst values stocks using a dividend discount model. Holding all other factors constant, which of the following is least likely to increase the estimated value of a stock? Select one:

A derivative is most accurately defined as a financial instrument that provides: Select one:

When the underlying stock price is $$95, an investor pays$$ 2 for a call option with an exercise price of $$95. If the stock price moves to$$ 96, the intrinsic value of the call option would be: Select one:

The value of a call option on a stock is least likely to increase as a results of: Select one:

For which of the following bonds is the price more sensitive to changes in YTM? Select one:

The current YTM is 5% and the price of the bond is $$100. Suppose that the yield increases by 100 bps (that is, to 6$$ 10. Suppose that the YTM then increases further, by another 100 bps (that is, to 7%). The bond price will Select one:

A head and shoulders pattern is indicative: Select one:

A investor longs put contract, he is expecting that: Select one:

Which statement is wrong about the relationship between bond price and maturity: Select one:

Investors who believe the price will fluctuate in the near future but are not sure about the direction of movement will follow: Select one:

The value of a bond is the amount that the issuer must pay at maturity. Select one:

Dividend discount models and P/E ratios are used by ............ to try to find mispriced securities. Select one:

Low P/E ratios tend to indicate that a company will ..........., ceteris paribus. Select one:

Sector rotation

Firm A produces widgets. The price of widgets is $$1 each. Firm A has total fixed costs of$$ 500,000 and variable costs of $0.5 per widget. The corporate tax rate is 40%. If the economy enters a recession, each firm will sell 1,100,000 widgets. If the economy enters a recession, the after-tax profit of Firm A will be: Select one:

Fiscal policy generally has a .......... direct impact than monetary policy on the economy, and the formulation and implementation of fiscal policy is ............ than that of monetary policy. Select one:

............. are analysts who use information concerning current and prospective profitability of a firm to assess the firm's fair market value. Select one:

An example of a positive demand shock is: Select one:

If interest rates increase, business investment expenditures are likely to ........... and consumer durable expenditures are likely to ........... Select one:

Suppose that you buy a perpetual bond that pays indefinitely you $50-per-year. And you require an investment rate of 12%. The price of this bond will be:

Factors affecting bond interest rates include:

Which statement is wrong about ex coupon date (ex interest date)

Which statement is wrong about Interest Rate Risk?

Which statement is correct about duration?

At the end of 2012, Mr. G invests in Amazon stock. He bought 10,000 shares, the price of 1 share was 25,000 VND. At the end of 2013: The company paid dividend by stock at a rate of 30%. At the end of 2014: The company paid 22% cash dividend. Calculates the dividend which Mr. G receives for the total number of shares. Select one:

Assume that retention ratio is 65%, ROE is 30.99% and discount rate is 25%, please calculate the intrinsic P/E. Select one:

Preferred stockholders hold a claim on assets that has priority over the claims of Select one:

The Gordon model. Select one:

In the investment process, which step must be identified before Asset allocation

DDM is suitable for the following companies

Fundamental analysis is:

Five competitive advantages exclude:

Profitability ratios exclude:

If A buys 10 shares at the price of VND 50,000 per share, after 4 years, A will sell 10 shares at the price of VND 70,000 per share. What is the investor's annual rate of return?

Investors holding convertible bonds have face value of VND 1,000,000, convertible price is VND 50,000/share, market price of stock is VND 55,000/share. The market price of bonds is VND 1,120,000. The company requires to buy back bonds at VND 1,110,000. If you are an investor, which option would you choose?

A year ago, you invested $1,000 in a savings account that pays an annual interest rate of 9%. What is your approximate annual real rate of return if the rate of inflation was 4% over the year? Select one.

Which of the following portfolio construction methods starts with security analysis? Select one.

You purchased a share of stock for $$68. One year later you received$$ 3.00 as a dividend and sold the share for $74.50. What was your holding-period return? Select one.

An estimate of the price change for a coupon bond caused by a 1% decline in its yield to maturity based only on its modified duration will result in an answer that: Select one.

To reduce the negative economic impact of the Covid-19 pandemic crisis, the State Bank of Vietnam cut its benchmark policy rates by 50 basis points on October 1, 2020. Which of the following is least likely the result of the SBV's rate cut? Select one.

If money supply and demand are in equilibrium and the central bank sells securities in the open market: Select one.

When the underlying stock price is $$95, an investor pays$$ 2 for a call option with an exercise price of $$95. If the stock price moves to$$ 97, the intrinsic value of the call option would be: Select one.

Reasonable ESOP (Employee Stock Ownership Plan) policy is: Select one.

You purchased one corn futures contract at $$2.29 per bushel. What would be your profit (loss) at maturity if the corn spot price at that time were$$ 2.10 per bushel? Assume the contract size is 5,000 bushels and there are no transactions costs. Select one.

Buyers of put options anticipate the value of the underlying asset will ............ and sellers of call options anticipate the value of the underlying asset will .......... Select one.

You sold one silver futures contract at $$3 per ounce. What would be your profit (loss) at maturity if the silver spot price at that time is$$ 4.10 per ounce? Assume the contract size is 5,000 ounces and there are no transactions costs. Select one.

The two primary tools of a technical analyst are: Select one.

On which of the following does a hammer sometimes appear? Select one.

Callable bonds: Select one.

If a 7% coupon bond is trading for $975.00, it has a current yield of: Select one.

You hold one long corn futures contract that expires in April. To close your position in corn futures before the delivery date you must: Select one.

A trader who has a .......... position in wheat futures believes the price of wheat will .......... in the future. Select one.

Antiquated Products Corporation produces goods that are very mature in their product life cycles. Antiquated Products Corporation is expected to pay a dividend in year 1 of $$1.00, a dividend of$$ 0.90 in year 2, and a dividend of $0.85 in year 3. After year 3, dividends are expected to decline at a rate of 2% per year. An appropriate required rate of return for the stock is 8%. The stock should be worth Select one:

Which of the following terms represents an upper price limit for a stock, based on the quantity of willing sellers? Select one:

Technicians believe that an industry or stock that is outperforming the market will tend to Select one:

At what point would an investor be indifferent between a GM corporate bond yielding 9.5 percent and a tax-free municipal bond of equal financial strength if the investor's marginal tax rate is 25 percent? Select one:

A zero-coupon bond has a yield to maturity of 9% and a par value of $1,000. If the bond matures in eight years (using annual compounding), the bond should sell for a price of today. Select one:

A coupon bond that pays interest annually has a par value of $1,000, matures in six years, and has a yield to maturity of 11%. The intrinsic value of the bond today will be if the coupon rate is 7.5%. Select one:

Suppose that the average P/E multiple in the oil industry is 20. Dominion Oil is expected to have an EPS of $3.00 in the coming year. The intrinsic value of Dominion Oil stock should be Select one:

Each of two stocks, A and B, are expected to pay a dividend of $5 in the upcoming year. The expected growth rate of dividends is 10% for both stocks. You require a rate of return of 11% on stock A and a return of 20% on stock B. The intrinsic value of stock A Select one:

The is a measure of the average rate of return an investor will earn if the investor buys the bond now and holds until maturity. Select one:

Of the following investments, considered the safest. is (are) Select one:

Ceteris paribus, the price and yield on a bond are Select one:

The top-down analysis of a firm starts with. Select one.

Zero had a FCFE of $4.5M last year and has 2.25M shares outstanding. Zero's required return on equity is 10%, and WACC is 8.2%. If FCFE is expected to grow at 8% forever, the intrinsic value of Zero's shares is. Select one.

Fly Boy Corporation is expected have EBIT of $$800k this year. Fly Boy Corporation is in the 30$$ 52,000 in depreciation, will make $$86,000 in capital expenditures, and will have a$$ 16,000 increase in net working capital this year. What is Fly Boy's FCFF? Select one.