Stocks Intermediate: Value Stocks

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1.
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.
2.
A value stock is one that is overpriced, given the companys earnings, debt load, price-to-book-value ratio, and future growth prospects.
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False. A value stock is underpriced, given the companys earnings, debt load, price-to-book-value ratio, and future growth prospects.
3.
You can often find value stocks during a bear market but seldom during a bull market.
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False. You can find value stocks during either a bear market or a bull market.
4.
Which of the following factors is least likely to indicate a value stock?
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A low book value. A low book value indicates low net assets, which could have a negative impact on future earnings growth.
5.
Which of the following is an example of a non-cyclical industry?
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Health care. This industry tends to react less to economic changes than many cyclical industries do.