Questions from General Investment


Q: What is dollar cost averaging? What is averaging down? Why

What is dollar cost averaging? What is averaging down? Why may averaging down result in poor investment decisions? What were the percentage changes for these measures of the stock market in subsequen...

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Q: You purchased $1,000 of IBM stock at the end

You purchased $1,000 of IBM stock at the end of each quarter from 2000 through 2006. Excluding commissions, how many shares have you accumulated? As of January 2010, IBM was selling for $130. What was...

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Q: What is the debt/equity ratio and the debt ratio for

What is the debt/equity ratio and the debt ratio for a firm with total debt of $700,000 and equity of $300,000?

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Q: A firm with sales of $500,000 has average inventory

A firm with sales of $500,000 has average inventory of $200,000. The industry average for inventory turnover is four times a year. What would be the reduction in inventory if this firm were to achieve...

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Q: If a firm has sales of $42,791,000

If a firm has sales of $42,791,000 a year, and the average collection period for the industry is 40 days, what should be this firm’s accounts receivable if the firm is comparable to the industry?

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Q: Determine the times-dividend-earned ratio given the following information

Determine the times-dividend-earned ratio given the following information: 30% corporate income tax rate $10,000 earnings before interest and taxes $2,000 interest owed $2,000 preferred stock dividend...

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Q: An investor buys 100 shares of a $40 stock that pays

An investor buys 100 shares of a $40 stock that pays an annual cash dividend of $2 a share (a 5 percent dividend yield) and signs up for the dividend reinvestment plan. a) If neither the dividend nor...

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Q: A firm has the following items on its balance sheet:

A firm has the following items on its balance sheet: Describe how each of these accounts would appear after the following: a) A cash dividend of $1 per share b) 10 percent stock dividend (fair market...

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Q: A company whose stock is selling for $60 has the following

A company whose stock is selling for $60 has the following balance sheet: / a) Construct a new balance sheet showing the effects of a 3-for-1 stock split. What is the new price of the stock? b) Const...

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Q: What is the difference between “support” and “resistance”

What is the difference between “support” and “resistance” in technical analysis?

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