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1.
Which of the following can beta do for you as a stockholder?
Help you pick stocks with the volatilities that are best for you. Although beta can help you with many other issues down the road, its most important role is to help you pick stocks on the basis of volatility.
2.
Fixed asset turnover measures _______.
The amount of sales a company generates from its fixed assets. It is used as a measure of sales success.
3.
Poor dividend payment on a company's part indicates that it will perform poorly in the future.
False. In many cases, companies reinvest their earnings to finance future growth. Such companies may actually do quite well in the future.
4.
A company's book value is _______.
The value of its assets minus liabilites. Book value is the value of a company's assets.
5.
Profit margin is a widely used measure in business. It measures earnings compared to _______.
Sales. Profit margin compares earnings to sales, where the earnings are either before taxes or after.
6.
Balance sheets balance _______.
Assets with liabilities. Equity, debt, taxes, and income are all included in assets and liabilities.
7.
To calculate a stock's price/earnings ratio, divide the present market price of a share by its earnings per share for the last 12 months.
True. This is the correct way to figure price/earnings ratio.