Question 12

A company splits its stock 3 for 2. You owned 500 shares before the split. How many do you have after the split?

a. 550

b. 350

c. 750

d. 500

4 points

Question 13

The ratio of dividends to stock price is called the

a. price/earnings ratio.

b. dividend yield.

c. dividend ratio.

d. PE turnover.

4 points

Question 14

ABC Corp. earned $4.20/share last year and paid $1.20 in dividends on an average price of $50/share. The dividend yield on the stock was _______ and the payout ratio was _________.

a. 2.4%; 29%

b. 2.4%; 71%

c. $1.20/year; 29%

d. 8.4%; $1.20/share

4 points

Question 15

Sam is a 50 share shareholder in MOP Inc. that earned $2 million, had 100,000 shares outstanding and a price-earnings ratio of 18. What is the current market value of Sam s investment in MOP Inc.?

a. $1800

b. $360

c. $18,000

d. $15,000

4 points

Question 16

A firm s _____ added to its _____ equals 1.0.

a. earnings per share, PE ratio

b. ROA, ROE

c. growth rate, net income

d. payout ratio, plowback ratio

4 points

Question 17

Cash flow from _____ is a firm s lifeblood.

a. sales

b. investing

c. financing

d. operations