FIN 420 WEEK 3 Week 3 Quiz
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FIN 420 WEEK 3 Week 3 Quiz
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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.
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FIN 420 WEEK 3 Week 3 Quiz
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