BUSN 380 DEVRY FINAL EXAM SET 2
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fundamental<br />
efficient<br />
secondary<br />
primary<br />
Question 24.24. (TCO 5) Last year, High-Tech Electronics earned $1.50 per share. If the current market<br />
value for a share of stock is $60, what is the firm’s P/E ratio? (Points : 4)<br />
0.04<br />
1.50<br />
40.00<br />
44.00<br />
60.00<br />
Question 25.25. (TCO 5) Scott Turner has a bond with 10 years to maturity, a face value of $1,000, an<br />
8% interest rate, and a market price of $800. What is the yield to maturity on this bond? (Points : 4)<br />
4.00%<br />
11.11%<br />
8.00%<br />
10.00%<br />
6.67%<br />
Question 26.26. (TCO 5) An example of a junk bond is a(n) (Points : 4)<br />
<br />
<br />
<br />
<br />
<br />
Treasury bond.<br />
bond rated B by Standard & Poor’s.<br />
bond rated AAA by Standard & Poor’s.<br />
insured municipal bond.<br />
Treasury bill.<br />
Question 27.27. (TCO 5) What is the current yield for a $1,000 corporate bond that pays 9% and has a<br />
current market value of $825? (Points : 4)<br />
9.0%<br />
10.9%<br />
10.0%<br />
8.25%<br />
8.0%<br />
Question 28.28. (TCO 3) Lori Walker purchased a new car 9 months ago, and decides to take it in for<br />
servicing under the warranty. Lori is involved in which step of the purchasing process? (Points : 4)<br />
<br />
<br />
<br />
Problem identification<br />
Information gathering<br />
Evaluating alternatives
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