Based on the study of analysing stocks value and stocks valuation, answer the following questions:

1-1. An analyst when taking into consideration earnings should:

a. Rely on current earnings b. Rely on future earnings c. Adjust the earnings d. Use the past record as a basis for calculating earnings e. Both a and c f. Both a, c and d

1-2. When valuing a stock properly which of the following must an analyst decide before he conducts his investigation?

a. Is this equity an earnings based equity or asset based equity b. Is this company domestic or foreign c. Is this company large cap or small cap d. None of the above e. All of the above

1-3. What is a characteristic of preferred stocks?

a. They pay interest not dividends

b. They mature on a specific date

c. They are great investments during periods of rising interest rates

d. Both a and b

e. None of the above

1-4. What are the characteristics of Intel that make this company a good investment? Select all that apply.

a. Return on equity b. Return on total capital c. Net profit margin d. Income tax rate e. Dividend yield f. Valuation g. Book value per share h. Depreciation

1-5. What factors would an analyst look for when evaluating Netflix. Please select all that apply.

a. Cash flow b. Income tax rate c. Operating margin d. Working capital e. Long term debt f. Pension obligations g. Dividend yield