Question 9 Ability to assume risk is based on your asset base, your time horizon, and...
Question 9 Ability to assume risk is based on your asset base, your time horizon, and your liquidity needs. Question 9 options: True False
Question 10 Company profit may be paid out to owners as cash or stock dividends. Question 10 options: True False
Homework Answers
9. TRUE. Ability to take investment risks is limited by how much you have to invest, how long you have to invest it, and your need for your portfolio to provide cash—for use rather than reinvestment—in the meantime.
10. TRUE. Dividends are distributions of earnings by a corporation to its stockholders. Usually the corporation pays dividends in cash, but it may distribute additional shares of the corporation's own capital stock as dividends.
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Question 9 Ability to assume risk is based on your asset base,
your time horizon, and...
If your time horizon is six to ten years and your asset allocation consists of 10...
If your time horizon is six to ten years and your asset allocation consists of 10 percent cash, 30 percent bonds, and 60 percent stocks, you would be considered to have a(n) ____ investment philosophy. aggressive moderate conservative ultraconservative
QUESTION 5 An estimate of a stock's "true" value based on accurate risk and return is...
QUESTION 5 An estimate of a stock's "true" value based on accurate risk and return is known as the company's market price. True False 2.5 points QUESTION 6 The verbal section of a company's annual report discusses the company's past year's performance and future prospects. True False 2.5 points QUESTION 7 Income Statement gives a "snapshot" of a company's assets and who has claims on them on a given date. True False 2.5 points QUESTION 8 Stockholders'...
10. Match the following definitions: (1) The ability to convert an asset into cash (2p each,...
10. Match the following definitions: (1) The ability to convert an asset into cash (2p each, total 20p) e ability to convert an asset into cash quickly without a significant loss of its value O Raw materials, work in progress and finished goods held by the form for eventue V Expenses that have been incurred but neither the related invoice received not be A noncash expense to allocate the cost of depreciable assets, such as plant and equipment, over the...
QUESTION 9 Allowance for Doubtful Accounts: a contra asset account True False 5 points QUESTION 10...
QUESTION 9 Allowance for Doubtful Accounts: a contra asset account True False 5 points QUESTION 10 Bonded employee: An employee who handles cash transactions, and is insured by the employer against any losses that may be done by that employee (such as theft). True False QUESTION 11 Petty cash journal entry used to start the fund: Debit: Cash Credit: Petty Cash True False 5 points Sverwer QUESTION 12 In a bank reconciliation: the adjusted bank balance and the adjusted book...
QUESTION 9 Assume XYZ stock is one the 30 stocks that comprise the DJIA. The closing...
QUESTION 9 Assume XYZ stock is one the 30 stocks that comprise the DJIA. The closing price for XYZ on January 10, 2018 was $231.48 On January 11, 2018, the DJIA opened at 10,097.90. The divisor at that time was.1350. Throughout the course of the day, the other 29 stock prices within the index remained unchanged and XYZ increased 3.2 percent. No stock spilits or stock dividends occurred throughout the day. Find the closing value of the DJIA on September...
Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is...
Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is 0.05. There are put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.89 and the puts cost $2.15. There are no dividends on the stock and the options are European. Assume that all transactions consist of 100 shares or one contract (100 options). Use this information to answer questions 6...
Stock ABC has a required return of 9 percent. Stock XYZ has a required return of...
Stock ABC has a required return of 9 percent. Stock XYZ has a required return of 11 percent. Assume a risk-free rate of 2.75 percent. As a result, Stock ABC is riskier than Stock XYZ. True False PQR, Inc. recently adjusted the probabilities for its expected cash flows due to a change in market conditions. It revised the probability of favorable conditions from 42% to 18% and the probability of poor earnings from 5% to 20%. It is likely that...
A stock's contribution to the market risk of a well-diversified portfolio is called the Capital Asset...
A stock's contribution to the market risk of a well-diversified portfolio is called the Capital Asset Pricing Model (CAPM), this risk can be measured by a metric called the beta coefficient, which calculates the degree to which a stock moves with the movements in the market. risk. According to Based on your understanding of the beta coefficient, indicate whether each statement in the following table is true or false: Statement True False Beta measures the volatility in stock movements relative...
Which of the following is FALSE of refugees: Question 9 options: The first asylum may not...
Which of the following is FALSE of refugees: Question 9 options: The first asylum may not be the country that they settle in They typically have less time to prepare for a move compared to immigrants They may experience posttraumatic stress They tend to experience less trauma than immigrants Based on the lecture for culture and mental health, which of the following is NOT one of the ways to reduce barriers to ethnic minorities utilizing mental health services? Question 10...
Consider an unincorporated firm with a two period (1 and 2) time horizon. At the beginning...
Consider an unincorporated firm with a two period (1 and 2) time horizon. At the beginning of period 1, the firm has a predetermined capital stock, K. Důring period 1, gross investment expenditure, I, financed out of retained earnings, are incurred with the purpose of both maintaining and increasing the capital stock in period 2. In each of the two periods, the capital stock depreciates at a rate 6, so at the beginning of period 2, the firm's capital stock...
10. Match the following definitions: (1) The ability to convert an asset into cash (2p each, total 20p) e ability to convert an asset into cash quickly without a significant loss of its value O Raw materials, work in progress and finished goods held by the form for eventue V Expenses that have been incurred but neither the related invoice received not be A noncash expense to allocate the cost of depreciable assets, such as plant and equipment, over the...
QUESTION 9 Allowance for Doubtful Accounts: a contra asset account True False 5 points QUESTION 10 Bonded employee: An employee who handles cash transactions, and is insured by the employer against any losses that may be done by that employee (such as theft). True False QUESTION 11 Petty cash journal entry used to start the fund: Debit: Cash Credit: Petty Cash True False 5 points Sverwer QUESTION 12 In a bank reconciliation: the adjusted bank balance and the adjusted book...
QUESTION 9 Assume XYZ stock is one the 30 stocks that comprise the DJIA. The closing price for XYZ on January 10, 2018 was $231.48 On January 11, 2018, the DJIA opened at 10,097.90. The divisor at that time was.1350. Throughout the course of the day, the other 29 stock prices within the index remained unchanged and XYZ increased 3.2 percent. No stock spilits or stock dividends occurred throughout the day. Find the closing value of the DJIA on September...
A stock's contribution to the market risk of a well-diversified portfolio is called the Capital Asset Pricing Model (CAPM), this risk can be measured by a metric called the beta coefficient, which calculates the degree to which a stock moves with the movements in the market. risk. According to Based on your understanding of the beta coefficient, indicate whether each statement in the following table is true or false: Statement True False Beta measures the volatility in stock movements relative...
Consider an unincorporated firm with a two period (1 and 2) time horizon. At the beginning of period 1, the firm has a predetermined capital stock, K. Důring period 1, gross investment expenditure, I, financed out of retained earnings, are incurred with the purpose of both maintaining and increasing the capital stock in period 2. In each of the two periods, the capital stock depreciates at a rate 6, so at the beginning of period 2, the firm's capital stock...
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