Stocks Intermediate: Value Stocks

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Which of the following is an example of a non-cyclical industry?
Choose wisely. There is only one correct answer.
Health care. This industry tends to react less to economic changes than many cyclical industries do.
2.
Stock from which of the following companies is most likely to be undervalued and might warrant additional research?
Choose wisely. There is only one correct answer.
A company that has just reported its first drop in annual earnings in a decade. The decline may be temporary.
3.
Which of the following factors is least likely to indicate a value stock?
Choose wisely. There is only one correct answer.
A low book value. A low book value indicates low net assets, which could have a negative impact on future earnings growth.
4.
A stock issued by a company with a large debt load is likely to be a value stock.
Choose wisely. There is only one correct answer.
False. A stock issued by a company with a large debt load may lack the resources to increase future earnings.
5.
Which of the following is the least likely internal factor to trigger a rise in the price of a value stock?
Choose wisely. There is only one correct answer.
Production employees strike for higher wages. Unless this problem can be solved quickly, it may threaten the companys prospects for growth.