· Question 1

2.5 out of 2.5 points

Which   one of the following is not a primary market function of investment bankers?

Response Feedback:

Good     work

· Question 2

2.5 out of 2.5 points

Market   stabilization is:

Response Feedback:

Good     work

· Question 3

2.5 out of 2.5 points

___________________   are comprised of direct costs, the spread, and underpricing.

Response Feedback:

Good     work

· Question 4

2.5 out of 2.5 points

An   agreement whereby an investment banker tries to sell securities of an issuing   corporation, but assumes no risk if the flotation is unsuccessful is called   a:

Response Feedback:

Good     work

· Question 5

2.5 out of 2.5 points

The   regulation of new security sales by individual states is referred to as:

Response Feedback:

Good     work

· Question 6

2.5 out of 2.5 points

A   stock that went from $40 per share at the beginning of the year to $45 at the   end of the year and paid a $2 dividend provided an investor with a ____   return.

Response Feedback:

Good     work

· Question 7

0 out of 2.5 points

According   to the definitions given in the text, if Stock A has a standard deviation of   4% and expected returns of 9%, and Stock B has a standard deviation of 3% and   returns of 1%, which stock is riskier?

Response Feedback:

That’s     not correct

· Question 8

2.5 out of 2.5 points

The   effect on revenues and expenses from variations in the value of the U.S.   dollar in terms of other currencies is called:

Response Feedback:

Good     work

· Question 9

2.5 out of 2.5 points

If   Stock A had a price of $120 at the beginning of the year, $150 at the end of   the year and paid a $6 dividend during the year, what would be the annualized   holding period return?

Response Feedback:

Good     work

· Question 10

0 out of 2.5 points

As   defined in accordance with efficient markets notions, a strong-form efficient   market would be a market in which asset prices reflect all:

Response Feedback:

That’s     not correct

· Question 11

2.5 out of 2.5 points

Under   which one of the following business organizations do the owners have   unlimited liability for all debts of the firm?

Response Feedback:

Good     work

· Question 12

2.5 out of 2.5 points

Suppose   Ningbo Steel had sales revenue of $10,000 sales revenue, cost of goods sold   of $5,000, operating expenses of $3000, interest expense of $1,000, a tax   rate of 20%, and 1,000 shares of common stock outstanding. Based on this   information, net profit after tax was:

Response Feedback:

Good     work

· Question 13

2.5 out of 2.5 points

Which   form of business organization does not have a basic weakness of raising   capital?

Response Feedback:

Good     work

· Question 14

2.5 out of 2.5 points

The   goal of a business should be:

Response Feedback:

Good     work

· Question 15

2.5 out of 2.5 points

Of   the following forms of business organization, which have the advantage of   limited liability but no stockholders?

Response Feedback:

Good     work

· Question 16

0 out of 2.5 points

The   quick ratio of a firm with current assets of $300,000, current liabilities of   $100,000 and inventory of $100,000 is:

Response Feedback:

That’s     not correct

· Question 17

2.5 out of 2.5 points

Ratios   used to compare different firms at the same point in time belong to a   category of analysis called:

Response Feedback:

Good     work

· Question 18

2.5 out of 2.5 points

The   _______________ ratio is computed as earnings before interest and taxes   divided by interest expense:

Response Feedback:

Good     work

· Question 19

2.5 out of 2.5 points

The   method of evaluating the firm’s performance over time is known as:

Response Feedback:

Good     work

· Question 20

2.5 out of 2.5 points

If   a firm has sales of $100, total expenses (including interest and taxes) of   $50, has a stock that is selling at $50 per share and has 10 shares of stock   outstanding, then the firm has a P/E ratio of:

Response Feedback:

Good     work

   p