Q1. A company's earnings are $3/share, its dividend is $2/share, and its stock price is $30/share. Its P/E is

Select one:

a. 6.

b. 15 percent.

c. 10.

d. 15.

Q2.

You are single, rent an apartment and go to school part-time and work part-time. Which of the following are you most likely to need?

Select one:

a. A will

b. Stockbroker

c. Life insurance

d. A budget

Question 3

A financial plan should be

Select one:

a. prepared when you graduate from college or university and reviewed and adjusted periodically as events such as marriage, job changes, birth of children, and retirement necessitate.

b. done only in a rough outline, as it will change too often to make anything more detailed feasible.

c. prepared when you graduate from college or university and carefully followed thereafter without changes.

d. prepared when you graduate from college or university and carefully followed until you retire, when you will no longer need one.

Q 4.

Which of the following is not a cash inflow?

Select one:

a. Car payment

b. Dividend income

c. Interest received

d. Salary

Question 5

A market in which stock prices fully reflect all information that is available to investors is called

Select one:

a. inefficient.

b. efficient.

c. factored.

d. overvalued.