Help with security analysis and portfolio management questions please

28. If comparable yields are 10%, what is the approximate price of a $100 par value preferred tock that pays an annual dividend of $5? $100 $75 $50 $25 32. Suppose corporate debt yields 10%. For an individual in the 33% income tax bracket, a competitive municipal debt must yield at least? 13.33% 10% 6.67% 3.33% 35. To determine the rate of return on a stock investment, the investor does not need to know Bond outperform Stocks Inflation rates tend to exceed treasury bill yields Common stocks outperform bonds Riskier stocks underperform less risky stocks 36. Long-term studies of rates of return on securities suggest that Bond outperform stocks Inflation rates tend to exceed treasury bill yields Common stocks outperform bonds Riskier stocks underperform less risky stocks 37. Dollar cost averaging is Periodically buying a round lot of stock Periodically investing a specified sum in a particular stock A means to increase the average cost basis of a position in a particular stock A means to insure a positive return on a n investment in a common stock 38. A best price order for buying stock is also known as a Stop order Short order Odd-lot order Market order 39. If a $1,000 bond pays interest of $90 annually, matures in 10 years, and costs $1,100 what is the approximate current yield? 8.2% 9.0% 9.6% 10.1% 41. Stocks that have a record for paying a higher proportion of their earnings as cash dividends on a regular basis are referred to as Income stocks Growth stocks Speculative stocks Blue chip stocks 42. A stock with earnings per share fo $3 and a price/ earnings (p/E) Ratio of 15 would have a market price of $5 $21 $38 $45 43. A stock's price will tend to decline if the firms beta declines and the firm's growth rate rises Declines, and the risk- free rate declines Rises, and the firm's growth rate rises Rises and the risk-free rate rises 44. Cash dividends Are paid from earnings Increase the firm's capacity to grow Are paid based on retained earnings growth Have no affect on a firm's current assets 45. Dividends issued in the stock of a company increase the Number of shares outstanding Firm's assets Firm's equity Stock's price 46. Dividends paid in the stock of a corporation cause the Price of a share of stock to rise Price of a share of stock to fall Value of the firm to rise Value of the firm to fall 47. Which of the following is not included in the equity section of a firm's balance sheet? Retained earnings Par value of preferred stock Paid-in capital Cash 49. Inventory turnover may increase if the firm Has a decrease in the cost of goods sold Uses less debt financing Increases its inventory Lowers the prices of its goods 50. What defines the return on equity? The ratio of sales to equity The measure of what the firm earns on capital gains The ratio of net income to total equity The measure of what the firm earns on sales 53. The odd lot theory suggests that Inexpensive stocks sell in fewer odd lots The small investor is often wrong Small investors do not buy high-priced stocks Individuals with modest amounts to invest outperform professional investors 54. Which of the following best describes the purpose of the Sarbanes-Oxley Act To legalize the sale of securities by investment bankers To redue potential conflicts of interest between securities analysts and investment bankers To require corporate bonds of directors to own their stock To mandate that securities analsts file their recommendation with the SEC 56. When selling short, profits will result if interest rates Rise, Causing security prices to rise Rise, causing security prices to fall Fall, causing security prices to rise Fall, causing security prices to fall 57. The intrinsic value of an option to buy stock is the difference between the Option's exercise price and its strike price Cost of option and its current market price Stock's market price and the option's exercise price Option's strike price and the option's price. 58. Why do options sell for a time premium over their intrinsic value? Because they earn dividends Because they are debt obligations Because they offer potential leerage Because they are long-term investments 59. If a firm repurchase its own stock, the Stockholders avoid capital gains Firm's assets are increased Earnings per share are increased Use of financial leverage declines. 60. Warrants do not have An expiration date A specified exercise price The right to receive dividends A strike price 61. If an investor writes a covered call, the Individual owns the call Risk is increased Potential profit is constrained Term of the position Is increased 66. The investment company Act of 1940 requires that An investment advisor disclose current business affiliations but not previous background Each investment company clearly states its general investment policies No more than 10% of the fund's assets be invested in speculative stocks Investment companies must register with the NASD but no the SEC 70. A futures contract to take deliver may be cancelled by Entering into a contract to make deliver Refusing to take delivery. Refusing to make delivery Letting the contract expire. 73. Collectibles are often purchased as investments because they offer. A potential price appreciation Monetary income Tax advantages Safety of principal 75. The Dow Theory purports to show the Direction of individual stock prices Direction of the market as a whole Direction of only the dow Jones industrials Investors' individual stock preferences 76. Tangible assets such a land or antiques Must be registered with the SEC or the Federal Reserve May be good investments in time of inflation May be good investments in time of deflation Are usually less risky than federal government securities. 77. The true or effective cost of a mortgage loan depends on the Individuals marginal tax rate Capital gain tax rate Individuals need to borrow Cost of the home