Investing in Stocks Answers

Which legally required form divulges information about financial advisors?a.Form DAVb.Form AVDc.Form ADVd.Form DVA

Stock in Trochel Office Supplies trades at $72.40 per share and pays a yearly dividend of $6.92 per share. If David owns stock in Trochel Office Supplies worth $6,443.60, how much does he get paid in yearly dividends?a.$678.16b.$931.16c.$615.88d.$560.52

Carmen buys 153 shares of Cawh Consolidated Banks, each of which pays a constant yearly dividend of $7.14. After six years, how much has Carmen received in dividends?a.$5,783.40b.$1,820.70c.$1,092.42d.$6,554.52

Drius Security stock has a yearly dividend of $12.11. If you own 132 shares of Drius Security, how much do you get paid in quarterly dividends?a.$133.21b.$1,598.52c.$366.96d.$399.63

Broker P charges a commission of $8.50 for every ten shares of stock, and Broker Q charges a fee of $65.00 for every thousand dollars bought or sold. If stock in Ergar Appliances costs $18.75 per share and you buy 500 shares, which broker is the better deal, and by how much?a.Broker Q will charge $375.35 less than Broker P.b.Broker Q will charge $160.22 less than Broker P.c.Broker P will charge $184.38 less than Broker Q.d.Broker P will charge $425.00 less than Broker Q.

June’s portfolio includes 177 shares of Parchar Special Effects, 213 shares of Giaco Household Goods, and 152 shares of Raxin Accounting. If Parchar Special Effects pays a yearly dividend of $8.21 per share, Giaco Household Goods pays $6.97 per share, and Raxin Accounting pays $11.44 per share, how much does June earn in dividends per year?a.$4,449.82b.$4,676.66c.$3,777.74d.$6,200.48

Mark is looking for professional financial assistance. Mark has never invested before and is not quite sure where to start. He knows that he wants to build up investments for future projects such as retirement, but he is not sure how to navigate investment in light of his existing debts. Recommend an appropriate financial professional for Mark. a. Full-service broker b. Discount broker c. Accountant d. Financial planner Please select the best answer from the choices provided

Which of the following services will be provided by a full-service broker but not by a discount broker?I. Research of potential investment opportunitiesII. Purchase and sale of stock at your requestIII. Recommendation of investmentsa.I and IIIb.II onlyc.III onlyd.I, II, and III

What is the SEC?a.The largest stock exchange in North Americab.The margin of profit you gain from stockc.The government agency which oversees the trading of stockd.The total worth of your stock portfolio

Liz owns stock in Nar Heating/Cooling and Cilla Shipping. She owns 120 more shares of Cilla Shipping than she does of Nar Heating/Cooling. Nar Heating/Cooling pays a yearly dividend of $5.78 per share, and Cilla Shipping pays a yearly dividend of $4.15 per share. If Liz receives $1630.02 in dividends annually, how many shares of Nar Heating/Cooling does she own?a.196 sharesb.114 sharesc.348 sharesd.282 shares

An electric guitar costs $830, with a $225 full-replacement warranty. If the manufacturer sells 532,475 warranties and has to honor 12% of them, how much profit did the manufacturer gain from the warranties?a.$105,430,050b.$66,772,365c.$53,034,510d.$508,726,615

Jim and Stephanie just got married and are thinking about changing their health care insurance plans to be more affordable. Currently, both Jim and Stephanie are insured through their own employers. Jim’s employer pays 42% of his $378 monthly premium. His insurance plan will also pay for 23% of the $345 premium for additional beneficiaries. Stephanie’s employer pays 35% of her $298 monthly premium but offers to pay an extra 10% of her premium for each beneficiary Stephanie adds to her plan. Her employer would then pay 30% of the $349 premium for each additional beneficiary.Insurance Jim's Employer BeneficiaryMonthly PremiumEmployer ContributionJim$378 42%Additional (each)$345 23% Stephanie's EmployerBeneficiaryMonthly PremiumEmployer ContributionStephanie$298 35% (+10% for each additional beneficiary)Additional (each)$349 30%Which would be the most economical way for the couple to purchase health insurance?a.They should both add each other to their plans.b.Stephanie should add Jim to her health care plan.c.Jim should add Stephanie to his health care plan.d.They should each purchase a plan from their own employer.

Gerald would like to add a dental and vision option to the health insurance plan he purchased through his employer. In addition to the 65% of Gerald’s $345 monthly health insurance premium, his employer has offered to pay 50% of a $38 monthly dental premium and 75% of a $23 monthly vision premium. If Gerald adds both the dental and vision options to his insurance plan, how much will he pay each month towards health insurance?Soopergood InsuranceOptionMonthly PremiumEmployer ContributionHealth Insurance$345 65%Dental$38 50%Vision$23 75%a.$141.75b.$145.50c.$149.50d.$260.50

A combination washer/dryer costs $1,179. New parts for this washer/dryer cost $211, labor to repair it costs $553, and shipping it to and from a repair center costs $152. A full warranty, which covers all aspects of repairing the washer/dryer, costs 30% of the price of the washer/dryer. A limited warranty, which only covers labor costs, only costs 14% of the price of the washer/dryer. Assuming that the washer/dryer needs repairs which include parts, labor, and shipping, which warranty is the better deal, and by how much, rounded to the nearest dollar?a.The limited warranty will end up costing the consumer $189 less.b.The limited warranty will end up costing the consumer $363 less.c.The full warranty will end up costing the consumer $553 less.d.The full warranty will end up costing the consumer $174 less.

Joshua is 25 years old and has a high risk job making $72,000 a year. The insurance company charges him an extra 20% on top of his premium rate because of his job. If Joshua wants a policy that will replace five years of his salary, what is the annual premium for the cheapest policy? a. $1,107 b. $1,328 c. $5,537 d. $6,644 Please select the best answer from the choices provided

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie’s limits the most without increasing her monthly premium by more than $5.00? Fret-No-More Auto Insurance Type of Insurance Coverage Coverage Limits Annual Premiums Bodily Injury $25/50,000 $21.35 $50/100,000 $32.78 $100/300,000 $42.10 Property Damage $25,000 $115.50 $50,000 $142.44 $100,000 $193.78 Collision $100 deductible $490.25 $250 deductible $343.33 $500 deductible $248.08 Comprehensive $50 deductible $105.79 $100 deductible $88.23 a. Increase coverage on bodily injury to $100/300,000. b. Increase coverage on property damage to $50,000. c. Increase coverage on bodily injury to $100/300,000 and on property damage to $50,000. d. Increase coverage on bodily injury to $100/300,000 and on property damage to $100,000. Please select the best answer from the choices provided

Of the following, which factor or factors would make it more likely that buying an extended warranty is a good idea?I. The extended warranty overlaps with the manufacturer’s warranty.II. The product has a high probability of needing repair in the next few years.III. The product is a major purchase that you are unlikely to soon replace.a.I and IIIb.II onlyc.II and IIId.I, II, and III

Peter and Marcia, both age 34, can each pay $650 a year each on life insurance for themselves. About how much is the face value of the largest combination of policies they can buy? a. $1,945,000 b. $972,000 c. $789,000 d. $806,000 Please select the best answer from the choices provided

In a fee-for-service health insurance plan with a $6,500 annual deductible, _____.a.the insurance company will not pay more than $6,500 for any hospital visit.b.the insurance company will pay at most $6,500 in health care in a calendar year.c.the insured individual must pay $6,500 in health care before the insurance company will begin to pay for his health care needs.d.the insured individual must pay $6,500 in equal monthly installments in order for the insurance company to pay for his health care needs.

Tina was involved in an accident in which she rear-ended another driver stopped at a stoplight. Tina is fully insured through her insurance company. Which of the following components of her insurance policy will cover the damages caused to Tina’s car in the accident?a.bodily injuryb.property damagec.collisiond.comprehensive damage