Phil has researched TLM Technologies and believes the firm is poised to vastly increase in value

Phil has researched TLM Technologies and believes the firm is poised to vastly increase in value. He wants to invest in this company. Phil has decided to purchase TLM Technologies bonds so that he can have a steady stream of interest income. However, he still wishes that he could share in the firm's success along with TLM's shareholders. Which one of the following bond features will help Phil fulfill his wish?    A.  put provision B.  positive covenant C.  warrant D.  crossover rating E.  call provision Refer to section 7.4

70.	A U.S. Treasury bond that is quoted at 100:11 is selling:    A.  for 11 percent more than par value. B.  at an 11 percent discount. C.  for 100.11 percent of face value. D.  at par and pays an 11 percent coupon. E.  for 100 and 11/32nds percent of face value. Refer to section 7.5

71.	Which of the following correctly describe U.S. Treasury bonds? I. have a "tick" size of 1/32 II. highly liquid III. quoted in dollars and cents IV. quoted at the dirty price    A.  I and II only B.  I and IV only C.  II and III only D.  II and IV only E.  I, II, and III only Refer to section 7.5

Recently, a neighbor you have known for years won a lottery and received a $250,000 prize

Recently, a neighbor you have known for years won a lottery and received a $250,000 prize. This neighbor decided to invest all of his winnings in a new business venture that he knew only had a five percent chance of success. Previous to this, the neighbor had always been ultra conservative with his money and had refused to invest in this business venture as recently as last week. Which one of the following behaviors most applies to your neighbor's decision to invest in this business venture now?    A.  overoptimisim B.  affect heuristic C.  loss aversion D.  house money E.  get-evenitis Refer to section 22.3

20.

Amy has been investing in stocks so she can accumulate sufficient money to purchase her own home. These savings are currently valued at $82,500. As recently as last month, her savings were worth in excess of $110,000. Today, Amy found the perfect house. She knows she can withdraw her savings to pay on this house and borrow the remaining balance from her father at zero percent interest. However, Amy is refusing now to buy any house until her savings increase in value back to their $110,000 previous valuation. Amy is displaying which one of the following behaviors?    A.  representativeness heuristic B.  loss aversion C.  house money effect D.  underconfidence E.  confirmation bias Refer to section 22.3

21.

Steve purchased a stock last year for $34 a share. The stock increased in value to $36 a share before declining to its current value of $30. Steve has decided to sell the stock, but only if he can receive $34 a share or better. Steve is suffering most from which one of the following behavioral conditions?    A.  representativeness heuristic B.  house money C.  get-evenitis D.  randomness E.  arbitrage reaction Refer to section 22.3

22.

Mike is a stock broker and financial planner. Phil is one of Mike's clients. Phil prefers to meet with Mike just once a year to review his investment portfolio. At their most recent meeting, Phil stated he believes the stock market is going to decline in value over the next six months. Thus, Phil instructed Mike to sell every stock he owns that is currently worth more than what he paid to purchase it. Phil also instructed Mike to retain any stock that would create a capital loss if sold. Phil is displaying the behavior known as:    A.  overconfidence. B.  arbitrage theory. C.  the disposition effect. D.  the house money effect. E.  a confirmation bias. Refer to section 22.3

Phil is working on a financial plan for the next three years. This time period is referred to as which one of the following?

1.	Phil is working on a financial plan for the next three years. This time period is referred to as which one of the following?    A.  financial range B.  planning horizon C.  planning agenda D.  short-run E.  current financing period

2.	Atlas Industries combines the smaller investment proposals from each operational unit into a single project for planning purposes. This process is referred to as which one of the following?    A.  conjoining B.  aggregation C.  conglomeration D.  appropriation E.  summation

3.

Which one of the following terms is applied to the financial planning method which uses the projected sales level as the basis for determining changes in balance sheet and income statement account values?    A.  percentage of sales method B.  sales dilution method C.  sales reconciliation method D.  common-size method E.  trend method

4.	Which one of the following terms is defined as dividends paid expressed as a percentage of net income?    A.  dividend retention ratio B.  dividend yield C.  dividend payout ratio D.  dividend portion E.  dividend section

5.

Which one of the following correctly defines the retention ratio?    A.  one plus the dividend payout ratio B.  addition to retained earnings divided by net income C.  addition to retained earnings divided by dividends paid D.  net income minus additions to retained earnings E.  net income minus cash dividends