FIN 420 WEEK 3 Week 3 Quiz

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FIN 420 WEEK 3 Week 3 Quiz Buy Solutions: https://goo.gl/Jz2f8B FIN 420 WEEK 3 Week 3 Quiz FIN 420 WEEK 3 Week 3 Quiz FIN 420 WEEK 3 Week 3 Quiz 1. John Smith purchased 100 shares of XYZ stock at $40 a share. One year later, he sold the stock for $50 a share. He paid a broker a $32 commission when they purchased the stock and a $40 commission when they sold the stock. During the 12-month period he owned the stock, XYZ paid dividends that totaled $1. Calculate the Smith’s total return for this investment. 30. 30.3% 31. 22.7% 32. 32.7% 33. 25.5% [((5000-40)+100)-(4000+32)]/4032 2. As a stockholder of ABC, you receive its annual report. In the financial statements, the firm reported after-tax earnings of $5,200,000 and has issued 1,600,000 shares of common stock. The stock is currently selling for $36 a share. What is the earnings per share for ABC? 2. $2.25/share 3. $0.29/share 4. $3.25/share 5.2 mil/1.6mil 5. $0.70/share 3. According to the “rule of 72,” a $2,000 investment earning 6% per year will double in 1. 3 years 2. 12 years 72/6=12 3. 8 years 4. 6 years 4. Jane invested $52,000 in the Victorius Social Responsibility Fund. The management fee for this fund is 0.80 percent of the total asset value. Calculate the management fee Jane pays per year for this fund. 416. $416.00 52K x 0.008 = 416 417. $41,600.00 418. $41.60 419. $4,160.00 5. Which type of fund can sell at a discount or premium to the net asset value? 1. Mutual Fund 2. Exchange Traded Fund 3. Closed-End Fund 4. Money Market Fund 6. US Treasury Bonds typically mature within 7. 3 months 8. 5 years 9. 7 years 10. 30 years 7. S&P currently gives US Treasuries a ____ credit rating. 8. AAA 9. AA+ 10. A 11. BBB 8. Penny stocks typically 9. have trouble with the SEC.. 10. generates huge profits for shareholders. 11. sell below $5 dollars per share and is very volatile. 12. become blue chip stocks in the long run. 9. Preferred stock is ____ in the capital structure. 10. above bonds and below stocks 11. above bonds and stocks 12. below bonds and stocks 13. above stocks and below bonds 10. Index funds typically 11. have low expense ratios. 12. are considered actively managed. 13. should be avoided due to high expense ratios. 14. will underperform actively manged funds. V012518 FIN 420 WEEK 3 Week 3 Quiz

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FIN 420 WEEK 3 Week 3 Quiz Buy Solutions: https://goo.gl/Jz2f8B FIN 420 WEEK 3 Week 3 Quiz FIN 420 WEEK 3 Week 3 Quiz FIN 420 WEEK 3 Week 3 Quiz 1. John Smith purchased 100 shares of XYZ stock at $40 a share. One year later, he sold the stock for $50 a share. He paid a broker a $32 commission when they purchased the stock and a $40 commission when they sold the stock. During the 12-month period he owned the stock, XYZ paid dividends that totaled $1. Calculate the Smith’s total return for this investment. 30. 30.3% 31. 22.7% 32. 32.7% 33. 25.5% [((5000-40)+100)-(4000+32)]/4032 2. As a stockholder of ABC, you receive its annual report. In the financial statements, the firm reported after-tax earnings of $5,200,000 and has issued 1,600,000 shares of common stock. The stock is currently selling for $36 a share. What is the earnings per share for ABC? 2. $2.25/share 3. $0.29/share 4. $3.25/share 5.2 mil/1.6mil 5. $0.70/share 3. According to the “rule of 72,” a $2,000 investment earning 6% per year will double in 1. 3 years 2. 12 years 72/6=12 3. 8 years 4. 6 years 4. Jane invested $52,000 in the Victorius Social Responsibility Fund. The management fee for this fund is 0.80 percent of the total asset value. Calculate the management fee Jane pays per year for this fund. 416. $416.00 52K x 0.008 = 416 417. $41,600.00 418. $41.60 419. $4,160.00 5. Which type of fund can sell at a discount or premium to the net asset value? 1. Mutual Fund 2. Exchange Traded Fund 3. Closed-End Fund 4. Money Market Fund 6. US Treasury Bonds typically mature within 7. 3 months 8. 5 years 9. 7 years 10. 30 years 7. S&P currently gives US Treasuries a ____ credit rating. 8. AAA 9. AA+ 10. A 11. BBB 8. Penny stocks typically 9. have trouble with the SEC.. 10. generates huge profits for shareholders. 11. sell below $5 dollars per share and is very volatile. 12. become blue chip stocks in the long run. 9. Preferred stock is ____ in the capital structure. 10. above bonds and below stocks 11. above bonds and stocks 12. below bonds and stocks 13. above stocks and below bonds 10. Index funds typically 11. have low expense ratios. 12. are considered actively managed. 13. should be avoided due to high expense ratios. 14. will underperform actively manged funds. V012518 FIN 420 WEEK 3 Week 3 Quiz

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