__________________ are comprised of direct costs, the spread, and underpricing.

· Question 1

2.5 out of 2.5 points

Which one of the following is not a primary market function of investment bankers?

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· Question 2

2.5 out of 2.5 points

Market stabilization is:

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· Question 3

2.5 out of 2.5 points

___________________ are comprised of direct costs, the spread, and underpricing.

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· Question 4

2.5 out of 2.5 points

An agreement whereby an investment banker tries to sell securities of an issuing corporation, but assumes no risk if the flotation is unsuccessful is called a:

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· Question 5

2.5 out of 2.5 points

The regulation of new security sales by individual states is referred to as:

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· Question 6

2.5 out of 2.5 points

A stock that went from $40 per share at the beginning of the year to $45 at the end of the year and paid a $2 dividend provided an investor with a ____ return.

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· Question 7

0 out of 2.5 points

According to the definitions given in the text, if Stock A has a standard deviation of 4% and expected returns of 9%, and Stock B has a standard deviation of 3% and returns of 1%, which stock is riskier?

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· Question 8

2.5 out of 2.5 points

The effect on revenues and expenses from variations in the value of the U.S. dollar in terms of other currencies is called:

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· Question 9

2.5 out of 2.5 points

If Stock A had a price of $120 at the beginning of the year, $150 at the end of the year and paid a $6 dividend during the year, what would be the annualized holding period return?

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· Question 10

0 out of 2.5 points

As defined in accordance with efficient markets notions, a strong-form efficient market would be a market in which asset prices reflect all:

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· Question 11

2.5 out of 2.5 points

Under which one of the following business organizations do the owners have unlimited liability for all debts of the firm?

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· Question 12

2.5 out of 2.5 points

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, interest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was:

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· Question 13

2.5 out of 2.5 points

Which form of business organization does not have a basic weakness of raising capital?

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· Question 14

2.5 out of 2.5 points

The goal of a business should be:

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· Question 15

2.5 out of 2.5 points

Of the following forms of business organization, which have the advantage of limited liability but no stockholders?

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· Question 16

0 out of 2.5 points

The quick ratio of a firm with current assets of $300,000, current liabilities of $100,000 and inventory of $100,000 is:

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· Question 17

2.5 out of 2.5 points

Ratios used to compare different firms at the same point in time belong to a category of analysis called:

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· Question 18

2.5 out of 2.5 points

The _______________ ratio is computed as earnings before interest and taxes divided by interest expense:

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· Question 19

2.5 out of 2.5 points

The method of evaluating the firm's performance over time is known as:

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· Question 20

2.5 out of 2.5 points

If a firm has sales of $100, total expenses (including interest and taxes) of $50, has a stock that is selling at $50 per share and has 10 shares of stock outstanding, then the firm has a P/E ratio of:

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