A company’s earnings per share, dividend per share and price per share in the prior year are $6.26, $2.50 and $53 respectively. What is its dividend yield?
When a company desires to decrease the market value per share of its common stock, the company will:
Fiscal policy attempts to stabilize the economy during the business cycle through:
Which of the following instruments are traded in a capital market?
(I) A share of common stock in a firm represents an ownership interest in that firm.(II) A share of preferred stock is as much like a bond as it is like common stock.
Monetary policy attempts to stabilize the economy by changes in:
Which of the following actions will increase a company's quick ratio?
The current ratio of a company is 1.5, which of the following actions will increase this company's current ratio?
Net income for 2020 of ABC Company is $150,000 and the company distributed $90,000 as cash dividends to its common shareholders. If all other things remain equal, by how much does its Stockholders equity increase for the year?
When a stock market index moves in one direction it means that:
The date when the stockholder right to receive a dividend expires is called the:
RAMA company stock price stood at $120 at the beginning of 2021. On 01/04/2021 the company declared a 3 for 2 stock splits. What is the approximate new market price for RAMA Stock?
The exchange rate is:
A company’s income statement includes items covering depreciation, payments to bondholders and taxes. Which of these three items, if any, must be deducted from the net sales figures in order to obtain the operating profit?
Companies split their shares in order to:
How long will it take $10,000 to double, if the interest rate is 5% compounded annually?
The New York Stock Exchange is primarily
Real gross domestic product or real GDP
After the day of record of a dividend paying stock:
In a market order, an investor asks the broker to execute a required transaction:
Which one of the following activities can be classified as financing activity in the Cash Flow statement?
(I) The coupon rate is the rate of interest that the issuer of the bond must pay. (II) The coupon rate is usually fixed for the duration of the bond and does not fluctuate with market interest rates.
Call provisions will be exercised by:
Financial markets have the basic function of:
Which of the following are examples of a primary market transaction?
An investor buys 60 ABC shares currently trading at $80 per share, assume the initial margin is 50% and the maintenance margin is 35%, and that the broker charges 10% per year for the loan. What is the price below which the investor has to replenish his margin with the broker?
After a stock split:
Which of the following can be described as involving direct finance?
Periods in which output and employment are falling are known as:
(I) Callable bonds must have a higher yield than comparable non – callable bonds.(II) Convertible bonds are attractive to bondholders and sell for a higher price than comparable nonconvertible bonds.
Preferred stockholders hold a claim on assets
Intangible assets are called so, because they:
Which one of the following is not a desirable property of a financial market?
Which of the following is a chief measure of economic growth over time?
Which of the following instruments is not traded in a money market?
When the value of the dollar changes from £0.5 to £0.75, then the pound has _____and the dollar has .
Which of the following statements about the characteristics of debt and equity are true?
If the issuer of a share announces a cash dividend and investor A sells some of these shares to investor B on the day before the record date, which of them will be entitled to this dividend payment?
In calculating the S&P 500 index (which is a value-weighted index), stock splits should be:
The present value of a single future sum:
Which of the following can be described as involving indirect finance?
A company following a residual dividend payout policy will pay higher dividends when, everything else equal, it has:
What does the ‘current ratio’ of a company primarily indicate?
The Red Sea Food Company has the following relationships:
What is the company’s return on equity?
Value-weighted index calculation:
If the total assets for the LIGHT Company are $240,000 while its current liabilities is $90,000. The company’s long term liabilities and owners’ equity is:
XYZ company share is currently trading at $120 each. If the company decides to have a 1 for 1 bonus issue, what will happen to its share price?
The custodian of an investor shares has responsibility for all the following except:
The responsibility for the proper preparation of company’s financial statements rests with:
In deep financial markets:
You just purchased a piece of land for $10 million and you expect a 12 percent annual rate of return on your investment, how much will you sell the land for in 10 years?
The latest financial statements for "MAYA Corporation" shows earnings per share of $6.20, dividends per share of $2.40 and a market price of $50 per share. What is its current ‘pay-out ratio’?
Which of the following refers to selling stock borrowed from another investor?
XYZ Company had the following balances at the end of 2010:
Cash
10,000
Net accounts receivables
35,000
Inventory
65,000
Prepaid expenses
15,000
Equipment
120,000
Common stock
130,000
The amount of XYZ current assets is:
Which of the following are long-term financial instruments?
Which of the following are short-term financial instruments?
A recession leads to all of the following except:
Gross Domestic Product is defined as:
Which of the following corporate actions is not mandatory?
Which one of the following items is usually included within the ‘cash flow from operating activities’ section of a company’s cash flow statement?