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BUSN 380 Week 4 Quiz Set 3 Click Here to Buy the Tutorial http://www.tutorialrank.com/BUSN/BUSN-380/product-14526-BUSN-380-Week-4Quiz-Set-3 For more course tutorials visit www.tutorialrank.com

1. (TCO 5) Which of the following statements is false? No one is going to make you save the money; you need to start a program. To be useful, investment objectives must be very specific. Investment goals can be different for each individual. Because investment objectives deal with the future, it is useful to plan more than 5 years in the future. A long-term investment objective involves a time period of 2 years or less.

Question 2. 2. (TCO 5) Eric Peltz earns $70,000 a year. His monthly expenses total $3,600. What is the minimum amount of money that Mr. Peltz should set aside in an emergency fund? $1,800 $3,600 $10,800 $21,600 $35,000


Question 3. 3. (TCO 5) You currently hold a $1,000 corporate bond; however, if interest rates in the overall economy increase, which of the following is most likely to be the market value of this bond? $900 $1,100 $1,000 The value of the bond will not change. It is impossible to determine whether the bond's value will increase or decrease.

Question 4. 4. (TCO 5) Which of the following individuals should have the highest tolerance for risk? Joan Cummings, who is a single mother with two small children Darren Carter, who works for American Airlines and is worried that he is going to be laid off soon Barry Parks, who is an investment banker and earns over $200,000 per year Michael Clark, who is 74 years old and been retired for 6 years Fred Funderbunk, who delivers pizzas and makes about $15,000 per year

Question 5. 5. (TCO 5) Mary Ann recently received a $20,000 gift from her uncle and is considering investing in stocks, because she knows that historically they have earned an approximately 10–12% rate of return over the last few years. Referring to aspects of investing, Mary Ann is most concerned about which of the following? Risk


Return Diversification Liquidity Income

Question 6. 6. (TCO 5) A $1,000 corporate bond pays 6.5% a year. What is the annual interest you will receive? $0.65 $6.50 $65.00 $1,060.50 $1,065.00

Question 7. 7. (TCO 5) Investments can be affected by all of the following risks except inflation. global risks. individual selection. business failure. market risks.


Question 8. 8. (TCO 5) Tracey Hernandez is 26 and has saved enough money for an emergency fund, along with an additional $4,500 for an investment program. She is single with no dependents and has a desire to retire at 65. What would best characterize Ms. Hernandez's investment goal? Beta Income Growth Risk Liquidity

Question 9. 9. (TCO 5) Matt Dannon just bought the stock of a company that provides him with the responsibility to approve major company actions. Which one of the following best characterizes this responsibility? Voting rights Proxy Equity Dividends None of the above

Question 10. 10. (TCO 5) If Orlando Blodgett is buying the stock of the Getaway Caribbean Cruise Company. If he buys the stock today, knowing it is the first day it is selling without the dividend for this quarter, on what date is Orlando buying the stock? Record date


Sale date Payment date Ex dividend date None of the above

Question 11. 11. (TCO 5) Bill Affleck is interested in buying preferred stock, but to be protected if the company needs to omit a dividend payment. He wants any unpaid dividends to accumulate and be paid before any common stock dividends are paid. Which one of these features of preferred stock is Bill seeking? Callable Cumulative Credible None of the above

Question 12. 12. (TCO 5) Common stock represents _____. a loan to a company corporate ownership a loan to an investor a guarantee of dividends a cash distribution


Question 13. 13. (TCO 5) One option for long-term corporate financing is equity financing, and this is a popular choice because a lender is always available to provide this type of financing. it does not cost anything to sell in the primary market. repayment doesn't have to be made for 10 years or more. only interest must be paid for the first 5 years. it does not have to be repaid.

Question 14. 14. (TCO 5) Which of the following statements is false? Stockholders elect the board of directors. Stockholders pay taxes on dividends. Intelligent investors must be concerned about future after-tax profits. Dividend payments may not be reduced or omitted at any time. Corporate dividends may not always be paid in cash.

Question 15. 15. (TCO 5) What is the approximate market value for a $1,000 corporate bond that pays 7% interest when comparable bonds are paying 8% interest? $800 $875 $70 $1,142


$1,000

Question 16. 16. (TCO 5) The _____ is the financially independent firm or individual that acts as the bondholders' representative. trustee president of the corporation debenture holder indenture holder chairman of the board

Question 17. 17. (TCO 5) A _____ bond is unsecured and gives bondholders a claim secondary to that of other designated bondholders with respect to both income and assets. subordinated debenture mortgage debenture preemptive Treasury


Question 18. 18. (TCO 5) A _____ is a bond typically secured by assets. debenture bond corporate bond mortgage bond preemptive bond Treasury bond

Question 19. 19. (TCO 5) A(n) _____ fund is a fund to which annual or semiannual deposits are made for the purpose of redeeming a bond issue. serial indenture debenture sinking money

Question 20. 20. (TCO 5) A _____ bond is registered in the owner's name by the issuing company. certified coupon general obligation zero-coupon


registered


Busn 380 week 4 quiz set 3