Question
1)Maria wishes to purchase a stock and has decided to conduct some fundamental analysis on the company. Which of the following will she most likely
1)Maria wishes to purchase a stock and has decided to conduct some fundamental analysis on the company. Which of the following will she most likely review during her analysis? I. cost structure II. cash flows III. management quality IV. earnings per share
1. | II, III, and IV only | |
2. | I and IV only | |
3. | I and II only | |
4. | I, II, III, and IV | |
5. | I, II, and IV only |
2)
Technical analysis is the:
1. | study of historical prices as a means of predicting future prices. | |
2. | analysis of economic conditions to determine future market movements. | |
3. | analysis of a firms specific products and services to predict future growth. | |
4. | review of a firms financial statements to predict future earnings potential. | |
5. | study of investors emotional patterns to predict future market trends. |
3) The price which is expected to be the minimal value for a security is called the:
1. | base value. | |
2. | resistance level. | |
3. | support level. | |
4. | reactive point. | |
5. | par value. |
4)
Precision Machinings last annual dividend was $.80 a share. The firm will increase the dividend by 8 percent annually for the foreseeable future. What is this stock worth today if the required return is 10 percent?
1. | $40.00 | |
2. | $14.52 | |
3. | $15.30 | |
4. | $15.06 | |
5. | $43.20 |
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