a. b. 23. The return on investment (or assets) or ROI of a firm is 25%. This means that For every $1, the firms make $0.25 in profit For every $1 of investment, the firms make $0.25 in profit For every $1 of equity, the firms make $0.25 in profit 24. A firms earning per share (EPS) is $1.70 and dividend per share is $1.20, if the P/E ratio of the firm is 30, price per share would be $51 c. a. b. $36 c. $30 a. d. Cannot be determined 25. Most of the money supply in the U.S.is created by the Federal Reserve System (central bank) b. U.S treasury Banking system 26. A bond issued by a U.S. company and was sold in Germany, but it was denominated in U.S. dollar. This is an example of an Foreign bond Eurobond c. a. b. c. Yankee bond d. Euro note I 27. Since a firm must pay its preferred stock dividend, it would go to bankruptcy if it misses a payment a. False 8. 29. The difference between a securities broker and a securities dealer is that a A broker buys/sells securities for him/her self while a dealer does so for clients b. Dealer buys/sells securities for him/herself while a broker does so for clients Broker underwrites securities, a dealer does not Dealer works for corporations, a broker works for individual investors There is no difference, they both perform same function c. d