Question 11(5 points)

When a bond is called, you're paid the present value of all bond payments that won't be paid because of the call only if what provision is present?

Question 11 options:

A)

Make-whole

B)

Most favored nation

C)

Conversion

D)

Call

Question 12(5 points)

Which of the following is considered to be a leading indicator?

Question 12 options:

A)

Stock prices

B)

GDP

C)

Industrial production

D)

Unemployment

Question 13(5 points)

Which of the following is a characteristic of a defensive sector?

Question 13 options:

A)

Low dividend yield

B)

High payout ratio

C)

Low sensitivity to the business cycle

D)

Rapid growth

Question 14(5 points)

A treasury bond has a yield to maturity of 6.4 percent, a time to maturity of 6 years, and a coupon rate of 9 percent. What's the bond price?

Question 14 options:

A)

$685

B)

$632

C)

$712

D)

$594

Question 15(5 points)

Which of the following is used to describe dividends plus the change in retained earnings?

Question 15 options:

A)

Cash flow

B)

Paid-in capital

C)

Gross income

D)

Net income

Question 16(5 points)

What's the Fed Funds Rate?

Question 16 options:

A)

The discount rate minus the rate of inflation

B)

The short-term rate at which banks lend to each other

C)

The prime rate plus the CPI

D)

The rate at which commercial banks borrow from the Federal Reserve discount window

Question 17(5 points)

A company has net income of $835,240, a price-earnings ratio of 18.2, and 300,000 shares of stock outstanding. If the price-cash flow ratio is 17.3, what's the cash flow per share?

Question 17 options:

A)

$3.26

B)

$2.93

C)

$3.15

D)

$3.10

Question 18(5 points)

Suppose you want to convert U.S. dollars to British pounds. If you have $45,000 and the exchange rate is $1.24 per pound, how many pounds will you receive in the conversion?

Question 18 options:

A)

37,124.93

B)

36,290.32

C)

38,443.85

D)

39.421.24

Question 19(5 points)

Which of the following is operating cash flow generally used for?

Question 19 options:

A)

Computing the asset retention ratio

B)

Calculating cash flow per share

C)

Computing earnings per share

D)

Calculating the payout ratio

Question 20(5 points)

Which of the following is one of Michael Porter's Five Forces?

Question 20 options:

A)

Bargaining power of buyers

B)

Inflation risk

C)

Interest rate risk

D)

Threat of new technology