If a stock has an expected dividend payout ratio of 50 percent, a required rate of return of 13 percent and an expected growth rate for dividends of 9 percent, what is the P/E ratio?
A. 8.5The median and the mode of the sample: 3, 2, 4, 5, 6, 99, 99, 100 equal:
A. 99, 6You have invested in a stock with a expected return of 14% and a standard deviation of 7%. Your target rate of return is 7%. What is the probability that you will not meet your objective, assuming stock returns are normally distributed?
A. 32%An unfortunate consequence of ________ and monetary instability is that people spend less time producing and more time trying to protect their wealth.
A. unemploymentUsing the following assumptions, calculate the rate of return on a margin transaction for an investor who purchases the stock and the stock price at which the investor who shorts the stock will receive a margin call. What of the following choices is closest to the correct answer? The margin transaction return is:
A. -12. 00%, and the investor will receive a margin call at a stock price of $16. 67.An increase in the discount rate makes it more expensive for banking institutions to fall below the ________ ratio.
A. none of these answersJulius Christus is an AIMR member and a vice president in the Risk Control department of a major commercial bank. Julius recently discovered that Jill Chapman had been grossly negligent in her duties involving monitoring of trading limits and violations by the trading desk. This is the first time Jill has been found to be remiss in her duties. Which of the following actions is the minimum necessary for Julius to be in compliance with Standard III (E) - Responsibilities of Supervisors?
A. Initiate an inquiry and take steps, such as placing limits on Jill's activities and increasing the monitoring of her activities to ensure that future violations do not occur.If the 50-day moving average line is above the 200-day moving average line but not by a large amount, technical analysts would consider this ________.
A. a bearish indicatorRedeemable preferred stock
A. is reported in stockholders' equity of the balance sheet.Marine Corp. uses the direct method to prepare its statement of cash flows. Marine's trial balance at December 31, 1996 and 1995 are as follows:
Dec. 31, 1996 Dec. 31, 1995
Debits:
Cash $35,000 $32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, plant and equipment1 00,000 95,000 Unamortized bond discount 4,500 5,000 Cost of goods sold250,000 380,000 Selling expenses 141,500172,000 General and administrative expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200
Total debits $756,700 $976,100
Allowance for doubtful accounts $1,300 $1,100 Accumulated depreciation 16,500 15,000 Trade accounts payable 25,000 17,500 Income taxes payable 21,000 27,100 Deferred income taxes 5,300 4,600 8% callable bonds payable 45,000 20,000 Common stock 50,000 40,000 Additional paid-in capital 9,100 7,500 Retained earnings 44,700 64,600 Sales 538,800 778,700
Total credits $756,700 $976,100
Marine purchased $5,000 in equipment during 1996. Marine allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
What amount should Marine report in its statement of cash flows for the year ended December 31, 1996 for cash paid for interest?
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