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Old 06-03-2010, 12:23 PM
newguy1480 newguy1480 is offline
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Default Some help expected on this

7. ATC Inc issues 100,000 Series A 4% $20 Par Value Preferred Shares at a price of
$22. On December 31, the shares are trading at $18. What is ATC’s annual dividend
payment?
A. $72,000
B. $76,000
C. $80,000
D. $88,000


8. Select the correct statement about bond pricing principles.
A. A bond sells at a premium when its yield is higher than its coupon rate.
B. A bond sells at a premium when its yield is less than its coupon rate.
C. A bond sells at a discount when its yield is less than its coupon rate.
D. There is no relationship between yields, coupon rates, and the market price of a
bond.

19. At approximately what price would a $1,000 par value bond with a 10% semi-annual
coupon 10 years to maturity and a discount rate of 10% trade?
A. Par.
B. Less than $1,000 but greater than $950.
C. Greater than $1,000 but less than $1,050.
D. Either less than $950 or greater than $1,050.

20. How is tax revenue an automatic stabilizer for an economy in a recession?
A. Decreased corporate revenues result in lower taxes.
B. Taxes paid reduce budget deficits.
C. Taxes paid move the economy towards a surplus.
D. Taxes paid fund increased social service programs.
21. Alpha Company’s retained earnings account at the start of the year was $1 million,
while its retained earnings account at the end of the year was $1.2 million. If the
company paid $100,000 in dividends during the year, calculate Alpha’s net earnings.
A. $100,000
B. $200,000
C. $300,000
D. $1,200,000

28. Nominal GDP increased from $100 billion last year to $105 billion this year. If the
inflation rate was 3% over the period, calculate the change in real GDP.
A. 2%
B. 3%
C. 4%
D. 5%

33. Calculate the yield on a 180 day T-bill trading at 97.75?
A. 2.25%
B. 2.30%
C. 4.56%
D. 4.67%

43. How is accrued interest on a bond treated when the bond is sold?
A. It is added to par to get the ask price.
B. It is subtracted from par to get the bid price.
C. It is deducted from the purchase price before issuing the bond.
D. It is paid by the purchaser of the bond to the seller.

47. Which statement regarding interest rates is true?
A. Lower interest rates tend to depress the economy.
B. The higher the expected inflation rate, the higher the interest rates on loans.
C. Higher interest rates increase the cost of capital, thereby increasing corporate profits.
D. If a lender requires a real rate of 2% and inflation is expected to be 5%, then the
nominal rate is 3%.

4. Which statement about P/E ratios is false?
A. P/E ratios are positively correlated with market confidence.
B. P/E ratios are positively related to the prevailing level of inflation.
C. P/E ratios fluctuate with changes in earnings volatility.
D. A low P/E ratio may indicate the market’s forecast of an imminent decline in
earnings.

95. An investor purchases a security for $12,000. At the end of the year the investor
transfers the security, now valued at $11,100, to his self-directed RRSP. Select the
correct statement.
A. The investor cannot transfer securities to a registered plan.
B. The investor could claim a $12,000 contribution to the plan.
C. The investor could claim an $11,100 contribution to the plan.
D. The investor could claim a $900 capital loss for the transaction.

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  #2  
Old 07-16-2010, 01:42 PM
lhkorn99 lhkorn99 is offline
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Location: NY/Queens/USA
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Default Re: Some help expected on this

8 = B
19=A
43=D
47=D
I think these are right- hope it helps
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Old 07-17-2010, 11:23 PM
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C9Consulting C9Consulting is offline
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Location: Tennessee+USA
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Default Re: Some help expected on this

"some help expected on this", not the best way to ask for help don't you think?
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