Chapter 10 Test Questions
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| show | commercial paper
🗑
|
||||
| All but one of the following is associated with characteristics of common stock? | show 🗑
|
||||
| Investors with 30 per cent of the voting stock of a corporation, interested in a seat on the board of directors, had better have _____ voting privileges. | show 🗑
|
||||
| The term shareholder equity implies | show 🗑
|
||||
| show | contractual
🗑
|
||||
| show | increase the marketability of securities
🗑
|
||||
| show | house
🗑
|
||||
| In a board of directors election for five directors and straight voting, a majority group of shareholders will elect: | show 🗑
|
||||
| show | an initial public offering
🗑
|
||||
| The New York Stock Exchange is an _________ market. | show 🗑
|
||||
| Which of the four secondary markets listed below involves considerable costs and no third party? | show 🗑
|
||||
| show | dealers
🗑
|
||||
| show | they help provide marketability for capital market claims, they have increased investors' willingness to buy capital market claims and they make people more willing to invest because they can more easily diversify thier risk
🗑
|
||||
| The capital market is allocationally effcient if.. | show 🗑
|
||||
| Regulators provide a valuable function for the capital markets because they: | show 🗑
|
||||
| show | decreases the foreign firm's U.S liquidity (and potentially total global issuer liquidity)
🗑
|
||||
| show | Electronically linking equity dealer and exchange markets, electronically linking international markets has created 24 hour trading opportunities for some stocks and U.S stock exchanges have extended thier normal trading hours (all of the above)
🗑
|
||||
| The household sector is the largest surplus sector and invests in the capital market... | show 🗑
|
||||
| show | 30 per cent
🗑
|
||||
| Sampson Corp, through its invest. banker, recently sold an 200,000 issue of stock to the public, grossing $7.4 mil. Issuing expenses paid by Sampson totaled $200,000 and the underwriters spread was $3/sh. Samp. Corp was able to net how much in the deal? | show 🗑
|
||||
| show | directly related to the riskiness of the issue
🗑
|
||||
| Which of the four secondary markets listed below involves considerable costs and no third party? | show 🗑
|
||||
| Which of the four secondary markets listed below minimizes price risk, but search costs are often high? | show 🗑
|
||||
| Which of the four secondary markets listed below has low search costs, price risk, and the expense of a bid/ask spread? | show 🗑
|
||||
| show | is large (%) for very small and very large transactions
🗑
|
||||
| show | less; more
🗑
|
||||
| The over-the-counter market trades _____ stocks than exchanges, and exchanges tend to list ________ companies. | show 🗑
|
||||
| show | having a large number of public shareholders
🗑
|
||||
| show | auction markets
🗑
|
||||
| show | must find a dealer in the stock, must find the most favorable price of the stock and might use a level 2 NASDAQ monitor
🗑
|
||||
| The daily pick sheets of the OTC market were replaced.. | show 🗑
|
||||
| All but one of the following are three major sources of active bids and offerings in a stock issue at a stock trading post on an exchange? | show 🗑
|
||||
| An order to the NYSE to buy or sell at the best price available is called: | show 🗑
|
||||
| Advances in technology and competition have created all but one of the following in equity markets: | show 🗑
|
||||
| Which of the following is true about secondary markets? | show 🗑
|
||||
| In response to competition from foreign stock exchanges, U.S stock exchanges have | show 🗑
|
||||
| show | is the Securities and Exchange Commission
🗑
|
||||
| show | Securities Act of 1933, Securities Exchange Act of 1935 and the Investment Company Act of 1940
🗑
|
||||
| What is the value of a stock expected to pay a constant $5 dividend each year forever, if the market required rate of return is 18%? | show 🗑
|
||||
| show | $20
🗑
|
||||
| Ace Corp is selling an IPO of stock. They expect to pay the new shares equivalent of $3 dividend/sh and expect the stock to be priced at $40 in 4 yrs. the market required rate of return is estimated to be 18 per cent. What is the value of the stock today? | show 🗑
|
||||
| show | $37.86
🗑
|
||||
| A stock, currently trading at $50 expects to pay a $4.50 dividend this year. The dividends and stock price has been growing at 8 per cent for 10 years. What is the expected total return on the stock this year? | show 🗑
|
||||
| show | systematic
🗑
|
||||
| Stocks with beta values of one | show 🗑
|
||||
| The security market line represents... | show 🗑
|
||||
| Using the security market line, calculate the required rate of return on a stock when the risk-free rate is 7%, the return on the market portfolio is 15% and the beta is 1.5? | show 🗑
|
||||
| When constructing a stock market index, two items below are needed to start the index? | show 🗑
|
||||
| show | 15%
🗑
|
||||
| show | 114
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
callieco