FCS 323 - Family and Individual Money Management » Spring 2022 » Chapters 14 Quiz

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Question #1
Rosa's is a small chain of Mexican food restaurants that features five delicious varieties of salsa. The business has grown over the past ten years from a hobby to a small corporation with 200,000 shares of common stock outstanding. The corporation has not issued any preferred stock. The following is Rosa's latest financial data: Annual earnings -$ 750,000 Annual sales - $12,650,000 Corporate assets - $20,500,000 Corporate liabilities - $12,800,000 Cash dividends (annual) - $ .50 Market Price Per Share - $35 What is the dividend yield on Rosa's stock?
A.   0.75 percent
B.   5.00 percent
C.   1.43 percent
D.   2.14 percent
Question #2
Rosa's is a small chain of Mexican food restaurants that features five delicious varieties of salsa. The business has grown over the past ten years from a hobby to a small corporation with 200,000 shares of common stock outstanding. The corporation has not issued any preferred stock. The following is Rosa's latest financial data: Annual earnings - $ 750,000 Annual sales - $12,650,000 Corporate assets - $20,500,000 Corporate liabilities - $12,800,000 Cash dividends (annual) - $ .50 Market Price Per share - $35 What is the current book value of Rosa's?
A.   $4,700,000.00
B.   $20,500,000.00
C.   $15,800,000.00
D.   $7,700,000.00
Question #3
You purchased a $1,000 bond paying a coupon rate of 7.0 percent 10 years ago. Comparable bonds that are new issues are paying a coupon rate of 9.0 percent. You decide to sell your bond, what would the selling price be?
A.   $777.78
B.   $800
C.   $1,250.00
D.   $1,133.00
Question #4
Rosa's is a small chain of Mexican food restaurants that features five delicious varieties of salsa. The business has grown over the past ten years from a hobby to a small corporation with 200,000 shares of common stock outstanding. The corporation has not issued any preferred stock. The following is Rosa's latest financial data: Annual earnings - $ 750,000 Annual sales - $12,650,000 Corporate assets - $20,500,000 Corporate liabilities - $12,800,000 Cash dividends (annual) - $ .50 Market Price Per Share - $35 What are the earnings per share for Rosa's?
A.   $3.50
B.   $3.75
C.   $2.00
D.   $2.34
Question #5
Gloria purchased a $1,0000 bond for $935. The coupon rate is 7.5 percent. What is Gloria's current yield on this bond?
A.   8.38 percent
B.   7.88 percent
C.   8.02 percent
D.   9.35 percent

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