Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Because common shareholders are entitled to the profits that remain after all of a corporation 's
1) _______ other obligations have been met, common shareholders are known as
A) debt owners.
B) temporary owners.
C) owners of last resort.
D) residual owners.
2) An individual who invested $100,000 in average stocks early in the year 2000 would have approximately how much money at the end of 2008?
A) $37,500
B) $96,400
C) $74,000
D) $137,500
2) _______
3) Over the long run, stocks have provided investors with annual returns of around
A) 12% to 14%.
B) 6% to 8%.
C) 10% to
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One issue carries voting rights, and the other issue does not. In this situation, Plum is said to have issued
A) classified stock.
B) treasury stock.
C) buy-back stock.
D) OTC stock.
15) ______
16) Another term for the stated value or face value of a stock is its
A) par value.
B) liquidation value.
C) book value.
D) proxy value.
16) ______
17) The par or stated value of common stock is important for
A) accounting purposes only.
B) helping the investor determine the stock 's intrinsic value.
C) helping the market determine the trading price of the stock.
D) helping the board of directors determine the dividend payout.
17) ______
18) The value that represents the amount of stockholders ' equity in a firm is called the
A) liquidation value.
B) book value.
C) par value.
D) market value.
18) ______
19) Westlake Industries has total assets of $42.5 million, total debt of $29.3 million, and $2.4 million of 6% preferred stock outstanding. If the company has 250,000 shares of common stock outstanding, its book value per share would be
A) $52.80.
B) $43.20.
C) $32.33.
D) $33.60.
19) ______
20) As a general rule, which one of the following statements concerning the various values of common stock is correct?
A) Market values are usually below par values.
B) Book values are usually below market values.
C) Par values are usually above book values.
20) ______
D) Market
My parents receive an earned income, meaning they work for it, unlike unearned income like child support and disability. My mom works as a Human Resources Director; she over sees all investigations in her facility and hires and fires people. My dad works as an Operations Sales Manager, so he over sees all of the different sales. They both have salary wages, so their income isn’t based on hours.
20. Which of the following statements is TRUE? Economists normally assume that the goal of the
Identify the letter of the choice that best completes the statement or answers the question.
Shareholders’ equity is the total amount of equity in the firm. The shareholders’ equity section of the balance sheet is explained in further detail on the statement of shareholders’ equity.
Identify the letter of the choice that best completes the statement or answers the question.
For an individual who pays personal income taxes at a rate of 30 percent, which of the following statements is most correct?
- A firm has a market value equal to its book value. Currently, the firm
It is important to know the proper technique and method of valuing a company because different people may have different ways of assessing the value; it is also important in understanding the bank’s method of appraising and valuing a company or business
It was July 31st 2015 just a regular summer Saturday for the Rodriguez family, the mother is cooking, dad is working, siblings doing their own thing, Melissa cleaning like always until . . . The phone rang for Melissa to go pick up but her mom answered. She ran towards Melissa and shakily passed the phone to her; “Hello?” she answered. “Hello Melissa, this is Bobby your Dad . . . he had an accident trying to break the new horse your dad said that as he was riding the horse and he was startled by a noise and the horse stood and flipped over and landed on top of your dad , he’s being rushed to the Methodist Dallas Medical Center I’m so sorry I’m praying for you and your family.” As she hung up the phone, it dropped to the ground. Melissa and
The root causes of Krebs’ alienation is present in the story when he returns home with no excitement, no parties, no talks of war or even a warm welcome. The lack of attention for his sacrifice creates a liar out of Krebs, and even though he hates it, he cannot prevent himself from lying due to the positive reinforcement he received amongst his peers from his lies. Why should he tell the truth? No one he closely associated with was there with him in Germany. He simply could not come home with a boring story for his family.
21. Which one of the following statements correctly applies to the period 1926-2010? A. Large-company stocks earned a higher average risk premium than did small-company stocks. B. Intermediate-term government bonds had a higher average return than long-term corporate bonds. C. Large-company stocks had an average annual return of 14.7 percent. D.
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Several internal factors can influence the valuation of a company, however, in the subsequent are some factors that will assist management in protecting its shareholders. The first reason is the desire to generate profits for the company, as a profitable firm will attract investors. Secondly, the need to improve the management of a company can lead to valuation as the information can be used to spur growth. Valuation will assist in understanding some of the factors affecting the value of the company such as client relationships, financials, image, technology employees, and marketing. Proper management is implemented after identifying the issues affecting the organization’s value. Thirdly, communicating to the public accurate and current information is essential in attracting investors and maintaining transparency, which builds the company image.
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