1. Long-term financing leases currently
show up on the balance sheet.
appear in the footnotes to the annual report.
appear on the company's statement of retained earnings.
do not appear on any financial statements.
2. Publicly-traded companies generally have
more pressure for short-term performance.
less pressure for short-term performance.
very strong stock market performance.
low distribution costs in selling securities.
3. Research has generally indicated that which Efficient Market hypothesis is clearly not correct?
Weak
Semi-strong
Strong
Two of the above
4. Security markets are efficient when each of the following exist except
security prices follow the leading indicators such as the DJIA very closely.
the markets can absorb large dollar amounts of stock without destabilizing the price.
prices adjust rapidly to new information.
there is a continuous market where each successive trade is made at a price close to the previous trade.
5. Shelf registration
allows firms to file with the SEC 20 days before the issue date.
is advantageous primarily to smaller investment banking firms.
allows firms to issue securities when market conditions are more favorable than current conditions.
more than one of the above are true.
6. The dollar interest received divided by the market price of the bond is called the
par value.
coupon rate.
current yield.
yield to maturity.
7. The efficient market hypothesis has several forms. The weak form states that
past price data is unrelated to future prices.
prices reflect all public information.
all information both public and private is immediately reflected in stock prices.
none of these
8. The following are primary purchasers of preferred stock except
corporate investors.
insurance companies.
pension funds.
individual investors.
9. The formation of the European Monetary Union and its single currency Euro is expected to
eliminate foreign currency risk between its member countries.
create stock and bond prices denominated in Euros.
have stock and bond indexes tracking a combined group of common stocks and bonds from the member countries.
All of these.