1. On the date of declaration, a company with a debt-to-assets ratio of .6 would expect which of the following to occur to the ratio?

   1. would not change

   2. would decrease

   3. would increase

   4. More information is needed to answer the question

2. On the date of record, a company with a debt-to-assets ratio of .6 would expect which of the following to occur to the ratio?

   1. would increase

   2. would decrease

   3. would not change

   4. More information is needed to answer the question

3. On the date of payment, a company with a debt-to-assets ratio of .6 would expect which of the following to occur to the ratio?

   1. would increase

   2. would decrease

   3. would not change

   4. More information is needed to answer the question

4. The amount for which a share of stock is actually sold to an investor by a corporation is the

   1. conversion price

   2. book value

   3. par value

   4. issue price

5. With respect to the current ratio, the declaration of a cash dividend will:

   1. have no effect on the current ratio.

   2. decrease the current ratio.

   3. increase the current ratio.

   4. have an effect that is reflective of the market price of the stock at the time the dividend is declared

6. Which of the following is correct regarding the relationship between interest rates and the market price of preferred stock?

   1. They are independent of one another

   2. They are directly related

   3. They are inversely related

   4. None of the above