31 Jan Find the net profit margin

Question 1

The document which details the issuer’s finances and must be provided to each buyer of the security is called the:

Question 2___________________ are comprised of direct costs, the spread, and underpricing.

Question 3

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

Question 4

A market has ________ if it can absorb large orders without disrupting prices; it has ___________ if it has many trades.

Question 5

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:

Question 6

Variations in operating income over time because of variations in unit sales, price, cost margins, and/or fixed expenses are called:

Question 7

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?

Question 8

Unsystematic risk is also known as:

Question 9

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

Question 10

The risk caused by variations in interest expense unrelated to sales or operating income arising from changes in the level of interest rates in the economy is called:

Question 11

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

Question 12

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

Question 13

Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

Question 14

All of the following accounts are considered to be current assets on the balance sheet except:

Question 15

The goal of a business should be:

Question 16

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

Question 17

Find the net profit margin if earnings before interest and taxes is $20,000, net income is $10,000, sales are $50,000, and total assets are $100,000.

Question 18

The extent to which assets are used to support sales is indicated by which of the following ratios:

Question 19

The primary purpose of the liquidity ratios is to determine:

Question 20

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: