1-Michelle buys $3000 in stock and holds the shares for one year. If she pays $50 per share in cash, receives no dividend, and sells the shares for $62.50 one year later, what will be her return on investment, ignoring transaction costs?

50.0%

25.0%

12.5%

37.5%

2-The current price of a stock is $25 per share. You place a limit order for 100 shares at $25.25 with a discount broker that charges $10 per transaction. By the time the order can be executed, the price has risen to $25.50. How much will you pay per share, including any commission?

$25.25 per share

$25.35 per share

$25.50 per share

This order will not be executed because the price has risen above your maximum.

3-A stock is currently selling for $38 per share, representing a price increase of $3 for the year, and there are 2 million shares outstanding. The company recently reported net income of $2 million. The annual dividend per share is $1. What is the companys P/E ratio?

3.8 times

$38 per share

$3 per share

38 times

4-You bought a stock for $26 per share one year ago and the share price is now $30. There are 1.3 million shares outstanding. The company recently reported net income of $2 million. The annual dividend per share is $1. What is the dividend yield over the last year?

1.0 per share

3.8%

1.5 per share

3.3%

5-How much interest will you receive every six months if you own a corporate bond with an 10 percent coupon and a face value of $1000?

$50.00

$150.00

$100

$10.00

6-All else being equal, which bond has the greatest interest-rate risk?

Ten percent coupon bond due 12/15/2023

Seven percent coupon bond due 12/15/2030

Two percent coupon bond due 12/15/2028

Zero percent coupon bond due 12/15/2035

7-The market just opened, and you would like to buy 100.00 shares of Apple stock. Your online trading app is quoting: AAPL Last: 238.80 | Bid: 238.77 | Ask: 238.83 | Open: 238.78 What would be your price if you submitted a market order at this second?

238.78

238.80

238.83

238.77

8-Donna currently owns a large position in Facebook. She originally purchased the stock at $39.50 per share. However, since the last presidential election, she has been concerned about the issues of privacy and risks associated with potential investigations that the company is exposed to. The stock is currently near the all-time high again. She is concerned about losing value because she is going on a two-week vacation and will not be able to initiate trades at that time. She would prefer to sell her stock if the price drops to $165.00. What type of trading strategy can she use to protect her gains?

Place a stop-loss order at $165 now.

Place a price alert to notify you when the stock trades near $165, so you can place a market order.

Place a limit order to sell at $165 now.

Place a price alert to notify you when the stock trades near $165, so you can place a limit order.

9-If you own 109 shares of stock currently selling at $59.00 per share and the company declares a 3 for 1 split, you will have about ______ after the split.

218 shares at $29.50

55 shares at $118.00

36.33 shares at $177.00

327 shares at $19.67