HIGHLIGHT ANSWERS

47. Efficiency ratios: A. Include the quick ratio, asset turnover ratio, and return on equity. B. are used to measure how liquid the company is. C. help answer questions of firm stability. D. are used to measure how well the company uses its assets. 48. The beta of an investment in U.S. Treasury bills is: B. meaningless; only common stocks have betas. C. 1.0 49. What happens to the coupon rate of a bond that pays $80 annually in interest if market interest rates change from 9% to 10%? A. The coupon rate increases to 10%. B. The coupon rate remains at 9%. C. The coupon rate remains at 8%. D. The coupon rate decreases to 8%. 50. If The Wall Street Journal lists a stock's dividend as $1, then it is most likely the case that the stock: A. paid S1 during the past year, with no future dividends forecast B. paid $1 during the past quarter, with no future dividends forecast C. pays $1 quarterly, or an estimated $4 annually D. pays S0.25 quarterly, or an estimated S1 annually