Exam 4 Personal Finance

Using the information given here, what are the earnings per share for the GHI company?-earnings = $375,000-number of shares outgoing = $150,000-price per share = $60-book value per share = $20 earnings per share = earnings/# of outgoing shares= $2.50
A stock that typically sells for less than $5 per share (or in some cases, less than $1 per share) is called an ________ stock. penny
Which of the following risks associated with preferred stocks or government corporate bonds is a result of changes in rates in the economy? interest rate risk
Which of the following is correct?a. corporate earnings are reported in the proxy statementb. ability to generate earnings is a minor factor in determining the value of a stockc. earnings per share uses the price of the sock in the calculation d. the price/earnings ratio is the price of a share of stock divided by the corporations earnings per share of stocke. EPS is a key factor that serious investors use to evaluate stock investments D
Using the info given, what is the price earnings ratio for DEF company?-earnings = $180,000-number of shares outstanding = $60,000-price per share = $30-book value per share = $10 $10
Jacob is updating his estate planning and wants to draft a legal document that leaves everything to his spouse. He is writing an______. simple will
An employers contribution will vary according to the company’s profits in a _____. profit-sharing plan
Which of the following is not a major source of retirement income? all of these are major sources of retirement income
Given the info, calculate the total return-dividends per share = $1.50-purchase price (july 15, 2010) = $50-sell price (july 15, 2011) = $56 $7.50
Which of the following would be considered a safe investment? savings account
A _____ cannot be changed or ended. irrevocable trust
Given the info, calculate the dividend yield-annual dividend = $4-number of shares outstanding = 40,000-current market price per share = $40-book value per share = $8 10%
An estate consists of everything you own
This tax is only imposed by state governments inheritance tax
Val wants to invest in a fund whose primary objectives is to conserve principal, provide income, and provide long-term growth. Which of the following will best meed her needs? balanced funds
The opportunity, but not the obligation to buy a security within a specified period of time at a guaranteed price is a call option
When thinking about retirement, which of the following is correct? the sooner you start saving, the better
Business failure risk can be due to bad management and/or unsuccessful products
Patrick sold his GE shares using his online broker. One can say that he sold them in the secondary market
The potential return on any investment should be directly related to the risk the investor assumes
All of the following statements are considered to be good advice for a potential investor in performing a financial checkup except increase credit purchases and make installment payments in order to increase cash available for investing
Which of the following investments typically has the most risk? stocks
If overall interest rates in the economy rise, a corporate bond with a fixed interest rate will generally decrease in value
A discounted security means that the actual purchase price is less than the maturity value
The formula ” (assets – liabilities) / number of shares outstanding ” equals book value

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