L2 Unit – 1 – Quiz

Stock markets in which already issued stocks are resold and re-bought are classified as

The ______ is defined as the present value of all cash proceeds to the investor in the stock.

The petroleum industry is an example of

The DuPont system of analysis

Dividend discount models and P/E ratios are used by __________ to try to find mispriced securities.

Which of the following indicates a buy signal to technical analysts?

The daily high price is represented on a candlestick chart by the

Which of the following is not a Dow Theory?

Which of the following is a type of chart that is used to track the price movements of a security?

Price movements that are caused by short-term deviations of prices from the underlying trend line are called

Right of stockholders of firm that new shares must be offered to existing stockholders first, rather than new stock holders is classified as

A preferred stock will pay a dividend of Rs. 3.00 in the upcoming year, and every year thereafter, for three year. You require a return of 9% on this stock. Use the constant growth model to calculate the intrinsic value of this preferred stock?

Linked with different marketing and technology strategy the overall corporate strategy is considered as

Which of the following is not a reason financial analysis is useful to investors?

If risk free rate of return is 6%, the beta of a share is 1.25 and the return on market return is 14%. Compute the required rate of return on the share according to the CAPM approach?

Which of the following is a correct statement regarding the Confidence Index?

Which of the following is not true about chart?

A Bullish Divergence represents __________ price pressure and a Bearish Divergence represents _________ price pressure.

The current dividend on an equity share of Blue-chip Ltd., is Rs. 5. the present growth rate is 50%. However , this will decline linearly over a period of 8 years and then stabilize at 10%. What is the intrinsic value per share of Blue-chip Ltd., if investors require a return of 18% from it’s stock?

Bull markets generally take place when the economy is strengthening or when it is already strong. They tend to happen in line with strong

Mr. A purchased a share of XYZ Ltd., common stock exactly one year ago for Rs. 45. During the past year the common stock paid an annual dividend of Rs. 2.40. Mr. A sold the security today for Rs. 85. What is the rate of return he has earned?

XYZ Ltd., has a current ratio of 1.2. If its ending inventory is understated by Rs. 12,000 and beginning inventory is overstated by Rs. 20,000. XYZ’s inventory turnover, current and quick ratios would be?

X Ltd., is expected to pay a dividend of Rs. 7 in the coming year. Dividends are expected to grow at the rate of 15% per year. The risk-free rate of return is 6% and the expected return on the market portfolio is 14%. The stock of X Ltd., has a beta of 3. The return you should require on the stock is __________.

If manufacturers profits are rising, it follows that they are producing more. If they produce more, then they have to ship more goods to consumers. Hence, if an investor is looking for signs of health in manufacturers, he or she should look at the performance of the companies that ship the output of them to market. This statement relates to which Dow Theory tenet?

“According to this logic, if manufacturers’ profits are rising, it follows that they are producing more. If they produce more, then they have to ship more goods to consumers. Hence, if an investor is looking for signs of health in manufacturers, he or she should look at the performance of the companies that ship the output of them to market, the railroads. “This statement relates to which Dow Theory tenet?