KLA stock is currently trading at $50 per share. The company announced earnings of $5.00 for 2006, up from $4.00 the previous year. As a result, it decided to raise its dividend to $5.00 from $2.50. At the same time, ABC stock is trading at $100 per share. It announced earnings of $1 per share. It has no dividend. The average P/E ratio for stocks in general is currently 20, while the average dividend yield is 5%. Which of these stocks would value and growth investors prefer?

Growth would opt for KLA and Value for ABC

Growth would opt for ABC and Value for KLA

Growth investors would be happy with both ABC and KLA

Value investors would prefer both ABC and KLA

The main problem with a reserve-based system of supplying money is that:

Inflation can easily get out of control

It is hard to adjust interest rates to deal with recessions and booms in the economy

There's a temptation to print lots of money

It is easy to run out of reserves

It provides an incentive to off-balance sheet lending

None of the above

ay you're looking at a $100 face value Government of Canada bond, with a coupon of 6.5%.and maturing in 2030. Its price went down yesterday from $101.50 to $101. This means:

The yield to maturity moved up

The yield to maturity remained the same at 6.5%

The yield to maturity moved down

Not clear from the information given what happened to the yield

The yield on a 10 year U.S. government bond is 5%, while the yield on GM's 10 year bonds is 13%. This is indicative of a:

Risk premium of 8% on U.S. government bonds

An upward sloping yield curve

Risk premium of 8% on GM's bonds

A real (inflation adjusted) rate of return of 8% on GM's 10 year bonds