Michael-Specter Financial has suffered losses in recent years, and its stock currently sells for only $0.50 per share. Management wants to use a reverse split to get the price up to a more "reasonable" level, which it thinks is $25 per share. How many of the old shares must be given up for one new share to achieve the $25 price, assuming this transaction has no effect on total market value? 47.50 b. 49.88 50.00 d. 52.50 55.13 a. c. e. a. You plan to invest some money in a bank account. Which of the following banks provides you with the highest effective rate of interest? Bank 1; 6.1% with annual compounding. b. Bank 2; 6.0% with monthly compounding. Bank 3; 6.0% with annual compounding. d. Bank 4; 6.0% with quarterly compounding. Bank 5; 6.0% with daily (365-day) compounding. C. e. a. Jordan's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its nominal (not effective annual rate of return? 8.03% b. 8.24% 8.45% d. 8.67% 8.89% c. e. a. c. Which of the following statements is CORRECT? The New York Stock Exchange is an auction market, and it has a physical location. b. Home mortgage loans are traded in the money market. If an investor sells shares of stock through a broker, then it would be a primary market transaction. d. While the distinctions are blurring, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties. e. Money markets deal with common stocks and other equity securities. Carter Construction recently reported $20.50 million of sales, $12.60 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. What was Carter's operating income, or EBIT, in millions? $3.21 b. $3.57 $3.97 d. $4.41 $4.90 a. C. e