(TCO 1) Which of the following characteristics of preferred stock is least important to a potential investor? (Points : 5) Maturity date Stated interest rate Whether the share's dividends are cumulative or noncumulative Answers 2 and 3 Answers 1, 2, and 3 Question 2.2. (TCO 8) If you were an investor looking for risk-free, fixed-income securities, which of the following would meet your needs? (Points : 5) Treasury bonds Corporate bonds Preferred stock Common stock None of the above Question 3.3. (TCO 1) When a company wants to issue and sell its securities, whether they are bonds or stock, they will ________. (Points : 5) usually place an ad in the Wall Street Journal contact an investment banker to assist them with following the legal requirements and with the sales of the securities themselves contact current stockholders first since they are more likely to wish to buy more stock find specialists on the floor of the exchanges who will buy all the security and then resell it Question 4.4. (TCO 1) Which of the following is not true about corporate bonds? (Points : 5) They usually pay semiannual or annual interest. Some bonds may be issued with callable or convertible features. They are pretty risk-free. Their interest is taxable, unlike municipal bonds. They are the primary method private firms use to raise money from external sources. Question 5.5. (TCO 4) The dollar value of all forms of bonds issued over the last several years has approached approximately _____. (Points : 5) $16 million $16 billion $16 trillion $3.8 billion Question 6.6. (TCO 5) As business people, we study macroeconomics because _______. (Points : 5) it's bigger than microeconomics it can help predict changes in inflation it can help us forecast how economic changes could affect certain industries more than others we can predict our companies' sales easier this way Question 7.7. (TCO 5) Fiscal policy _________. (Points : 5) refers to the Federal Government's adjusting of taxes and government spending is the best way to always handle unemployment is usually less cumbersome to implement than monetary policy usually takes years to have an impact Question 8.8. (TCO 5) Which of the following is a leading indicator? (Points : 5) Ratio of trade inventories to sales Industrial production Average duration of unemployment Initial claims for unemployment Question 9.9. (TCO 5) The balance sheet ________. (Points : 5) lists the company's assets and who owns them (creditors or owners) is usually done in the middle of an accounting period lists assets at their true market value tells you if the company is profitable Question 10.10. (TCO 5) ROE can be improved by _______. (Points : 5) increasing net profits increasing sales increasing asset turnover All of the above None of the above Question 11.11. (TCO 5) A high Price Earnings Mulitple _______________. (Points : 5) may be interpreted as a stock with low growth potential. may be interpreted as a stock with high growth potential. allows the investor to pay less per dollar of current earnings. none of the above. Question 12.12. (TCO 5) The Quick Ratio is _______ . (Points : 5) current assets divided by current liabilities. current liabilities divided by total assets. (cash + marketable securities + receivables) / current liabilities. (cash + marketable securities) / current liabilities