金融市场与机构(11)

1、Chapter11TheStockMarketMultipleChoiceQuestions1. (I)Ashareofcommonstockinafirmrepresentsanownershipinterestinthatfirm.(II)Ashareofpreferredstockisasmuchlikeabondasitislikecommonstock.(a) (I)istrue,(II)false.(b) (I)isfalse,(II)true.(c) Botharetrue.(d) Botharefalse.Answer:C2. Preferredstockholdershold

2、aclaimonassetsthathaspriorityovertheclaimsof(a) bothcommonstockholdersandbondholders.(b) neithercommonstockholdersnorbondholders.(c) commonstockholders,butafterthatofbondholders.(d) bondholders,butafterthatofcommonstockholders.Answer:C3. (I)Preferredstockholdersholdaclaimonassetsthathaspriorityovert

3、heclaimsofcommonstockholders,butafterthatofbondholders.(II)Firmsissuepreferredstockinfargreateramountsthancommonstock.(a) (I)istrue,(II)false.(b) (I)isfalse,(II)true.(c) Botharetrue.(d) Botharefalse.Answer:A4. (I)Preferredstockholdersholdaclaimonassetsthathaspriorityovertheclaimsofcommonstockholders

4、.(II)Bondholdersholdaclaimonassetsthathaspriorityovertheclaimsofpreferredstockholders.(a) (I)istrue,(II)false.(b) (I)isfalse,(II)true.(c) Botharetrue.(d) Botharefalse.Answer:C5. (I)Firmsissuecommonstockinfargreateramountsthanpreferredstock.(II)Thetotalvolumeofstockissuedismuchlessthanthevolumeofbond

5、sissued.(a) (I)istrue,(II)false.(b) (I)isfalse,(II)true.(c) Botharetrue.(d) Botharefalse.Answer:C6. Theriskiestcapitalmarketsecurityis(a) preferredstock.(b) commonstock.(c) corporatebonds.(d) Treasurybonds.Answer:B7. Organizedexchangesaccountforaboutpercentofthetotaldollarvolumeofdomesticstockshares

6、traded.(a) 30(b) 45(c) 60(d) 70Answer:D8. Organizedexchangesaccountforaboutpercentofthetotaldollarvolumeofdomesticstockstraded.(a) 60(b) 70(c) 80(d) 90Answer:B9. (I)ThelargestoftheorganizedstockexchangesintheUnitedStatesistheNewYorkStockExchange.(II)TobelistedontheNYSE,afirmmusthaveaminimumof$100mil

7、liondollarsinmarketvalueor$10millioninrevenues.(a) (I)istrue,(II)false.(b) (I)isfalse,(II)true.(c) Botharetrue.(d) Botharefalse.Answer:A10. TolistontheNYSE,afirmmust(a) haveearningsofatleast$100millionforeachofthelastthreeyears.(b) haveatleast$500millionofmarketvalueand$100millionofrevenue.(c) havea

8、totalof$100millioninmarketvalueofpubliclytradedshares.(d) meetalloftheaboverequirements.(e) meet(a)and(b)oftheaboverequirements.Answer:E知识是人类进步的阶梯知识是人类进步的阶梯知识是人类进步的阶痹11. Securitiesnotlistedononeoftheexchangestradeintheover-the-countermarket.Inthisexchange,dealers“makeamarketby(a) buyingstocksforinve

9、ntorywheninvestorswanttosell.(b) sellingstocksfrominventorywheninvestorswanttobuy.(c) doingbothoftheabove.(d) doingneitheroftheabove.Answer:C12. Themostactivestockexchangeintheworldisthe(a) NikkeiStockExchange.(b) LondonStockExchange.(c) ShanghaiStockExchange.(d) NewYorkStockExchange.Answer:A13. Whi

10、chofthefollowingstatementsabouttradingoperationsinanorganizedexchangearecorrect?(a) Floortradersalldealinawidevarietyofstocks.(b) Inmosttrades,specialistsmatchbuyandsellorders.(c) Inmosttrades,specialistsbuyfororsellfromtheirowninventories.(d) TheSuperDOTsystemisusedtoexpeditelargetradesofover100,00

11、0shares.Answer:B14. WhichofthefollowingisnotanadvantageofElectronicCommunicationsNetworks(ECNs)?(a) AllunfilledordersareavailableforreviewbyECNtraders.(b) TransactionscostsarelowerforECNtrades.(c) Tradesaremadeandconfirmedfaster.(d) ECNsworkwellforthinlytradedstocks.Answer:D15. Whichofthefollowingst

12、atementsisfalseregardingElectronicCommunicationsNetworks(ECNs)?(a) ArchipelagoandInstinetaretwoexamplesofECNs.(b) CompetitionfromECNshasforcedNASDAQtocutitsfees.(c) Tradersbenefitfromlowertradingcostsandfasterservice.(d) ECNsallowinstitutionalinvestors,butnotindividuals,totradeafterhours.Answer:D16.

13、 Abasicprincipleoffinanceisthatthevalueofanyinvestmentis(a) thepresentvalueofallfuturenetcashflowsgeneratedbytheinvestment.(b) theundiscountedsumofallfuturenetcashflowsgeneratedbytheinvestment.(c) unrelatedtothefuturenetcashflowsgeneratedbytheinvestment.(d) unrelatedtothedegreeofriskassociatedwithth

14、efuturenetcashflowsgeneratedbytheinvestment.Answer:A知识是人类进步的阶梯知识是人类进步的阶梯知识是人类进步的阶痹17. Astockcurrentlysellsfor$25pershareandpays$0.24peryearindividends.Whatisaninvestorvaluationofthisstockifsheexpectsittobesellingfor$30inoneyearandrequires15percentreturnonequityinvestments?(a) $30.24(b) $26.30(c) $26

15、.09(d) $27.74Answer:B18. Astockcurrentlysellsfor$30pershareandpays$1.00peryearindividends.Whatisaninvestorvaluationofthisstockifheexpectsittobesellingfor$37inoneyearandrequires12percentreturnonequityinvestments?(a) $38(b) $33.50(c) $34.50(d) $33.93Answer:D19. Intheone-periodvaluationmodel,astock'

16、;svaluewillbehigher(a) thehigherisitsexpectedfutureprice.(b) thelowerisitsdividend.(c) thehigheristherequiredreturnoninvestmentsinequity.(d) alloftheabove.Answer:A20. Intheone-periodvaluationmodel,astock'svaluefallsiftherises.(a) dividend(b) expectedfutureprice(c) requiredreturnonequity(d) curre

17、ntpriceAnswer:C21. Inthegeneralizeddividendvaluationmodelastock'svaluedependonlyon(a) itsfuturedividendpaymentsanditsfutureprice.(b) itsfuturedividendpaymentsandtherequiredreturnonequity.(c) itsfuturepriceandtherequiredreturnoninvestmentsonequity.(d) itsfuturedividendpayments.Answer:B22. Whichof

18、thefollowingisnotanelementoftheGordongrowthmodelofstockvaluation?(a)(b) (c)(d)thestock'smostrecentdividendpaid.theexpectedconstantgrowthrateofdividends.therequiredreturnoninvestmentsinequity.thestocksexpectedfutureprice.Answer:D知识是人类进步的阶梯知识是人类进步的阶梯知识是人类进步的阶痹23. AccordingtotheGordongrowthmodel,wh

19、atisaninvestor'svaluationofastockwhosecurdividendis$1.00peryearifdividendsareexpectedtogrowataconstantrateof10percentoveralongperiodoftimeandtheinvestor'srequiredreturnis11percent?(a) $110(b) $100(c) $11(d) $10(e) $5.24Answer:A24.AccordingtotheGordongrowthmodel,whatisaninvestor'svaluatio

20、nofastockwhosecurrentdividendis$1.00peryearifdividendsareexpectedtogrowataconstantrateof10percentoveralongperiodoftimeandtheinvestor'srequiredreturnis15percent?(b)(c)(d)(e)$20$11$22$7.33$4.4025. Holdingotherthingsconstant,astock(a) 15percent(b) 10percent(c) 5percent(d) 2percentAnswer:A26. Holdin

21、gotherthingsconstant,astock(a) $2.00(b) $5.00(c) $0.50(d) $1.00Answer:B27. Holdingotherthingsconstant,astockinvestmentsinequityis(a)20percent(b)15percent(c)10percent(d)5percentsvaluewillbehighestifitsdividendgrowthrateissvalueiwi蛇bedsigihBsstntdividendissvaluewillbehighestiftheinvestorAnswer:CAnswer

22、:D知识是人类进步的阶梯知识是人类进步的阶梯知识是人类进步的阶痹28. SupposetheaverageindustryPEratioforautopartsretailersis20.WhatisthecurrentpriceofAutoZonestockiftheretailer'searningspershareareprojectedtobe$1.85?$21.85(b) $37(c) $10.81(d) $9.25Answer:B29. WhichofthefollowingistrueregardingtheGordongrowthmodel?(a) Dividendsa

23、reassumedtogrowataconstantrateforever.(b) Thedividendgrowthrateisassumedtobegreaterthantherequiredreturnonequity.(c) Both(a)and(b).(d) Neither(a)nor(b).Answer:A30. ThePEratioapproachtovaluingstockisespeciallyusefulforvaluing(a) privatelyheldfirms.(b) firmsthatdon'tpaydividends.(c) both(a)and(b).

24、(d) neither(a)nor(b).Answer:C31. ThePEratioapproachtovaluingstockisespeciallyusefulforvaluing(a) publiclyheldcorporations.(b) firmsthatregularlypaydividends.(c) both(a)and(b).(d) neither(a)nor(b).Answer:D32. AweaknessofthePEapproachtovaluingstockisthatitis(a) difficulttoestimatetheconstantgrowthrate

25、ofafirm'sdividends.(b) difficulttoestimatetherequiredreturnonequity.(c) difficulttopredicthowmuchafirmwillpayindividends.(d) basedonindustryaveragesratherthanfirm-specificfactors.Answer:D33. Afirmisexpectedtopayadividendof$1.00nextyearandthedividendisexpectedtogrowataconstantrateof4percentoverti

26、me.Someinvestorshaverequiredreturnsoninvestmentsinequityof12percent,some10percent,andsome8percent.Themarkepriceofthisfirm'sstockwillbeslightlyabove(a)(b) (c)(d)$25$18$16.67$12.50Answer:C知识是人类进步的阶梯知识是人类进步的阶梯知识是人类进步的阶痹34. (I)Themarketpriceofasecurityatagiventimeisthehighestvalueanyinvestorputsonth

27、esecurity.(II)Superiorinformationaboutasecurityincreasesitsvaluebyreducingitsrisk.(a) (I)istrue,(II)isfalse.(b) (I)isfalse,(II)istrue.(c) Botharetrue.(d) Botharefalse.Answer:B35. Themaincauseoffluctuationsinstockpricesischangesin(a) taxlaws.(b) errorsintechnicalstockanalysis.(c) dailytradingvolumein

28、stockmarkets.(d) informationavailabletoinvestors.(e) totalhouseholdwealthintheeconomy.Answer:D36. Stockvaluescomputedbyvaluationmodelsmaydifferfromactualmarketpricesbecauseitisdifficultto(a) estimatefuturedividendgrowthrates.(b) estimatetheriskofastock.(c) forecastastock'sfuturedividends.(d) all

29、oftheabovearetrue.Answer:D37. The2001terroristattacksandtheEnronfinancialscandalcausedanticipateddividendgrowthto,investors'requiredreturnonequityto,andstockpricesto(a) decreases;increase;decrease(b) decrease;increase;increase(c) increase;decrease;decrease(d) increase;decrease;increaseAnswer:A38

30、. WhichofthefollowingisnotanobjectiveoftheSecuritiesandExchangeCommission?(a) maintainintegrityofthesecuritiesmarkets(b) adviseinvestorsaboutwhichparticularstocksaregoodbuys(c) requirefirmstoprovidespecificinformationtoinvestors(d) regulatemajorparticipantsinsecuritiesmarketsAnswer:BTrue/False1. Mor

31、estocktradingintheU.S.occursinover-the-countermarketsratherthanonorganizedexchanges.Answer:FALSE2. Inover-the-countermarkets,dealersincreasestheliquidityofthinlytradedsecurities.Answer:TRUE3. ElectronicCommunicationsNetworksapplytechnologytomakeorganizedexchangesmoreefficientandspeedy.Answer:FALSE4.

32、 Allstockspaydividends,asthatistheonlywayaninvestorcanprofitfromholdingstock.Answer:FALSE5. Commonstockistheriskiestcorporatesecurity,followedbypreferredstockandthenbonds.Answer:TRUE6. TheEnronfinancialscandalincreaseduncertaintyaboutthequalityofaccountinginformationandasaresultincreasedrequiredreturnoninvestmentinstocks.Answer:TRUE7. TheDowJonesIndustrialAverageisthebroadestandbestindicatorofthestockmarketday-to-dayperformance.Answer:FALSE8. TheSecuritiesandExchangeCommissionre