FIN 370 Week 4 Assignment | Quiz | University Of Phoenix
- University of Phoenix / FIN 370
- 03 Dec 2019
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FIN 370 Week 4 Assignment | Quiz | University Of Phoenix
1.
MC Qu. 9-24 WayCo stock
was $75 per share...
WayCo stock was $75 per
share at the end of last year. Since then, it paid a $3 per share dividend last
year. The stock price is currently $70. If you owned 200 shares of WayCo, what
was your percent return?
Multiple Choice
o
4.00 percent
o
−6.67 percent
o
−2.67 percent
o
4.29 percent
2.
MC Qu. 9-57 Sprint Nextel
Corp. stock ended the previous ...
Sprint Nextel Corp. stock
ended the previous year at $25.00 per share. It paid a $2.57 per share dividend
last year. It ended last year at $18.89. If you owned 650 shares of Sprint,
what was your dollar return and percent return?
Multiple Choice
o
−$3,960; −15.13 percent
o
$2,960; 11.13 percent
o
−$4,960; −16.13 percent
o
−$2,301; −14.16 percent
3.
MC Qu. 9-7 Which of the
following is an...
Which of the following is
an index that tracks 500 companies, which allows for a great deal of
diversification?
Multiple Choice
o
Wall Street Journal
o
Nasdaq
o
Fortune 500
o
S&P 500
4.
MC Qu. 9-27 Rank the
following three stocks by...
Rank the following three
stocks by their risk-return relationship, best to worst. Rail Haul has an
average return of 10 percent and standard deviation of 15 percent. The average
return and standard deviation of Idol Staff are 15 percent and 25 percent; and
of Poker-R-Us are 12 percent and 35 percent.
Multiple Choice
o
Idol Staff, Rail Haul, Poker-R-Us
o
Rail Haul, Idol Staff, Poker-R-Us
o
Idol Staff, Poker-R-Us, Rail Haul
o
Poker-R-Us, Idol Staff, Rail Haul
5.
MC Qu. 9-98 If you
invested $1,000 in Disney...
If you invested $1,000 in
Disney and $5,000 in Oracle and the two companies returned 15 percent and 18
percent respectively, what was your portfolio's return?
Multiple Choice
o
15.5 percent
o
17.5 percent
o
17.1 percent
o
16.2 percent
6.
MC Qu. 9-12 Which of the
following is the...
Which of the following is
the concept and procedure for combining securities into a portfolio to minimize
risk?
Multiple Choice
o
Firm specific theory
o
Modern portfolio theory
o
Total portfolio theory
o
Optimal portfolio theory
7.
MC Qu. 10-25 Compute the
expected return given these three...
Compute the expected
return given these three economic states, their likelihoods, and the potential
returns:
Economic State Probability Return
Fast Growth 0.1
50 %
Slow Growth 0.6
8 %
Recession 0.3
−10 %
Multiple Choice
o
6.8 percent
o
12.8 percent
o
22.7 percent
o
16.0 percent
8.
MC Qu. 10-2 Which of the
following is the...
Which of the following is
the average of the possible returns weighted by the likelihood of those returns
occurring?
Multiple Choice
o
Required return
o
Market return
o
Efficient return
o
Expected return
9.
MC Qu. 10-90 Whenever a
set of stock prices...
Whenever a set of stock
prices go unnaturally high and subsequently crash down, the market experiences
what we call a(n):
Multiple Choice
o
stock market bubble.
o
irrational behavior.
o
none of the options.
o
financial meltdown.
10
MC Qu. 10-17 Which of
these is a theory...
Which of these is a
theory that describes the types of information that are reflected in current
stock prices?
Multiple Choice
o
Efficient market hypothesis
o
Asset pricing
o
Behavioral finance
o
Public information
11.
MC Qu. 10-12 Which of
these is a measure...
Which of these is a
measure of the sensitivity of a stock or portfolio to market risk?
Multiple Choice
o
Hedge
o
Behavioral finance
o
Efficient market
o
Beta
12.
MC Qu. 10-23 Special
rights given to some employees...
Special rights given to
some employees to buy a specific number of shares of the company stock at a
fixed price during a specific period of time are known as:
Multiple Choice
o
restricted stock.
o
stock market bubble.
o
executive stock options.
o
privately-held information.
13.
MC Qu. 10-40 A company's the current stock price is $84.50 and...
A company's current stock
price is $84.50 and it is likely to pay a $3.50 dividend next year. Since
analysts estimate the company will have a 10 percent growth rate, what is its
expected return?
Multiple Choice
o
14.14 percent
o
4.14 percent
o
10.00 percent
o
4.26 percent
14.
MC Qu. 11-86 Which of the following will impact...
Which of the following
will impact the cost of the equity component in the weighted average cost of
capital?
Multiple Choice
o
Beta
o
Expected return on the market
o
The risk-free rate
o
All of the above
15.
MC Qu. 11-89 Which of the following will directly...
Which of the following
will directly impact the cost of equity?
Multiple Choice
o
Profit margins
o
Expected future tax rates
o
Expected growth rate in sales
o
Stock price Correct
16.
MC Qu. 11-120 Paper The exchange has 10 million shares...
Paper Exchange has 10
million shares of common stock outstanding, 5 million shares of preferred stock
outstanding, and 100 thousand bonds. If the common shares are selling for $25
per share, the preferred shares are selling for $10 per share, and the bonds
are selling for 98 percent of par, what would be the weight used for preferred
stock in the computation of Paper's WACC?
Multiple Choice
o
5.00 percent
o
12.00 percent
o
3.33 percent
o
12.56 percent
17.
MC Qu. 11-32 TellAll has
10 million shares of...
TellAll has 10 million
shares of common stock outstanding, 20 million shares of preferred stock
outstanding, and 100 thousand bonds. If the common shares are selling for $32
per share, the preferred shares are selling for $20 per share, and the bonds
are selling for 106 percent of par, what would be the weight used for preferred
stock in the computation of TellAll's WACC?
Multiple Choice
o
55.55 percent
o
33.33 percent
o
66.45 percent
o
48.43 percent
18.
MC Qu. 11-91 ADK has 30,000 15-year 9 percent annual...
ADK has 30,000 15-year 9 percent annual coupon
bonds outstanding. If the bonds currently sell for 111 percent of par and the
firm pays an average tax rate of 36 percent, what will be the before-tax and
after-tax component cost of debt?
Multiple Choice
o
9 percent; 5.76 percent
o
7.74 percent; 4.95 percent
o
percent; 5.15 percent
o
7.91 percent; 5.06 percent
19.
MC Qu. 11-20 Which of
these are fees paid...
Which of these are fees
paid by firms to investment bankers for issuing new securities?
Multiple Choice
o
User fees
o
Flotation costs
o
Seller financing charges
o
Interest expense
20.
MC Qu. 11-15 Which of the
following is a...
Which of the following is
a principle of capital budgeting which states that the calculations of cash
flows should remain independent of financing?
Multiple Choice
o
Financing principle
o
WACC principle
o
Separation principle
o
Generally accepted accounting principle
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