FIN 2100 FINAL EXAM (UCF)
QUESTIONS WITH CORRECT
ANSWERS 2025-2026 UPDATED.
B - Answer An investor has 220 shares of Exxon/Mobil stock, which pays a quarterly dividend
of $0.40 per share. What is his/her quarterly dividend payment?
A. $40
B. $88
C. $550
D. $22
C - Answer An investor has 360 shares of Walmart, which just declared a 2 for 1 stock split.
On the day before the stock split, the shares were trading at $80 per share. The day after the
split, how many shares does the investor have and how much is each one worth?
A. 40 shares, $720/per share
B. 720 shares, $160/share
C. 720 shares, $40/share
D. 180 shares, $160/share
A - Answer What is the equity risk premium for small company stocks given the following
assumptions:
Return on small company stocks = 12%
Return on Treasury bonds = 5%
Inflation rate = 3%
A. 7%
B. 5%
C. 8%
D. 9%
D - Answer An investor bought a stock for $40 per share. It now trades for $90 per share and
pays an annual dividend of $1 per share ($0.25 per quarter). What is the current dividend yield
on this stock?
, A. 0.28%
B. 2.5%
C. 4.4%
D. 1.1%
C - Answer ABC Corp. has earnings of $300,000,000 with 100,000,000 shares outstanding.
ABC's earnings per share would be_______?
A. $0.30
B. $0.33
C. $3
D. $33
B - Answer Knight Corp.'s stock trades at $60. It has a book value of $15 per share and
earnings per share of $3.00. What is the PE ratio for Knight Corp.?
A. 4
B. 20
C. 5
D. 15
D - Answer What is a government security issued in minimum units of $100 with maturities
that are 4-week, 13-week, 26-week, and 52-week?
A. municipal bond
B. minimum security
C. government bond
D. treasury bill
A - Answer What is a bond that provides federally tax-free interest income?
A. municipal bond
B. minimum security
C. government bond
D. treasury bill
QUESTIONS WITH CORRECT
ANSWERS 2025-2026 UPDATED.
B - Answer An investor has 220 shares of Exxon/Mobil stock, which pays a quarterly dividend
of $0.40 per share. What is his/her quarterly dividend payment?
A. $40
B. $88
C. $550
D. $22
C - Answer An investor has 360 shares of Walmart, which just declared a 2 for 1 stock split.
On the day before the stock split, the shares were trading at $80 per share. The day after the
split, how many shares does the investor have and how much is each one worth?
A. 40 shares, $720/per share
B. 720 shares, $160/share
C. 720 shares, $40/share
D. 180 shares, $160/share
A - Answer What is the equity risk premium for small company stocks given the following
assumptions:
Return on small company stocks = 12%
Return on Treasury bonds = 5%
Inflation rate = 3%
A. 7%
B. 5%
C. 8%
D. 9%
D - Answer An investor bought a stock for $40 per share. It now trades for $90 per share and
pays an annual dividend of $1 per share ($0.25 per quarter). What is the current dividend yield
on this stock?
, A. 0.28%
B. 2.5%
C. 4.4%
D. 1.1%
C - Answer ABC Corp. has earnings of $300,000,000 with 100,000,000 shares outstanding.
ABC's earnings per share would be_______?
A. $0.30
B. $0.33
C. $3
D. $33
B - Answer Knight Corp.'s stock trades at $60. It has a book value of $15 per share and
earnings per share of $3.00. What is the PE ratio for Knight Corp.?
A. 4
B. 20
C. 5
D. 15
D - Answer What is a government security issued in minimum units of $100 with maturities
that are 4-week, 13-week, 26-week, and 52-week?
A. municipal bond
B. minimum security
C. government bond
D. treasury bill
A - Answer What is a bond that provides federally tax-free interest income?
A. municipal bond
B. minimum security
C. government bond
D. treasury bill
