SIE Mastery Exam 1 Questions With Verified And Updated Solutions.

SIE Mastery Exam 1 Questions With Verified And Updated Solutions. If a corporation's stock price rises to an extremely high level: A trading volume tends to decline and the corporation is likely to split its stock to reduce the market price B trading volume tends to rise and the corporation is likely to split its stock to reduce the market price C trading volume tends to decline and the corporation is likely to buy back shares for its Treasury to increase the market price D trading volume tends to rise and the corporation is likely to buy back shares for its Treasury to increase the market price - answerA++ trading volume tends to decline and the corporation is likely to split its stock to reduce the market price Treasury Bills are issued by the U.S. Government in which form? - answerA Book Entry B Bearer C Registered to Principal Only D Registered to Principal and Interest A customer owns 1,000 common shares of ABC Corporation. Which of the following actions will dilute the shareholders' equity? - answerA ABC declares a 5% stock dividend B++ ABC declares that it will call its convertible preferred stock, which is currently trading at a premium C ABC declares that it will issue an additional $100,000,000 in bonds D ABC declares a 4:1 stock split The market price of common stock will be influenced by which of the following? - answerA The par value of the shares B ++Expectations for future earnings growth C Date of incorporation for the issuer D Book value of the company A customer buys 100 shares of XYZ stock at $40. The stock pays a quarterly dividend of $.50. What is the dividend yield? A 1% B 1.25% C 4% D 5% - answerD++ 5% ABC Company has issued 8%, $100 par, cumulative preferred stock. Two years ago, ABC paid a 4% preferred dividend. Last year, ABC paid a 5% preferred stock dividend. This year, ABC wishes to pay a common dividend. If the preferred stock is now trading at $94, a customer who owns 100 shares of the company's preferred stock will receive: A $700 B $800 C $1,000 D $1,500 - answerD $1,500 Which statement is BEST regarding participating preferred stock? A The dividend rate is fixed B The dividend rate varies depending on the decision of the Board of Directors C The dividend rate is fixed as to maximum but not as to minimum D The dividend rate is fixed as to minimum but not as to maximum - answerD++ The dividend rate is fixed as to minimum but not as to maximum A middle-aged widowed customer has an investment objective of stable income and would also like to receive occasional "extra" income to help pay unexpected bills. What type of preferred stock would be the best recommendation? A Participating preferred B Convertible preferred C