COLLECTION EMERGENCY RESPONSE
AND FIRE CODE MODULE SOLVED ITEMS
AND RESPONSE KEY
◉ ROE RATIO. Answer: PROFIT/EQUITY
◉ EPS. Answer: PROFIT/NUMBER OF COMMON SHARES
OUTSTANDING
◉ DIVIDEND YIELD. Answer: Annual Dividend / Stock Price
◉ P/E RATIO. Answer: ratio of stock price to earnings per share
◉ MEASURING PERFORMANCE. Answer: ENDING NAVPS-
BEGGINING NAVPS X100/BEGGINING NAVPS
◉ PURCHASE PRICE. Answer: NAVPS/100%-SALES CHARGE
◉ INFLATION. Answer: CPI CURRENT PERIOD- CPI PREVIOUS
PERIOD/CPI PREVIOUS PERIOD X 100
,◉ RETURN %. Answer: CASH FLOW + ENDING VALUE - BEGINNING
VALUE/BEGGINIGN VALUE X 100
◉ CURRENT RATIO. Answer: current assets - current liabilities
◉ INTEREST RATIO COVERAGE. Answer: EARNING BEFORE
INTEREST AND TAXES/TOTAL INTEREST CHARGES
◉ GROSS PROFIT MARGIN RATIO. Answer: Gross Profit/Sales
◉ CURRENT YIELD ON BONDS. Answer: ANNUAL CASH SHOW/
CURRENT MARKET PRICE X100
◉ Direct investment. Answer: Couple investing savings in a home,
government building a new highway
◉ Indirect investment. Answer: Purchase of representational items
such as stocks or mutual funds
◉ Capitals three characteristics. Answer: It is mobile, sensitive to its
environment, it is scarce
, ◉ Retail investors. Answer: Individual investors who buy and sell
securities for their own personal accounts, and not for another
company or organization.
◉ Institutional Investors. Answer: Large organizations - such as
pension funds, mutual funds, and insurance companies - that invest
their own funds or the funds of others
◉ Derivaties. Answer: Products based on or derived from an
underlying security
◉ Secondary Market. Answer: Investments that have already been
issued by companies or governments
◉ Auction Market. Answer: buyers enter bids and sellers enter offers
for a stock
◉ Dealer Markets. Answer: Network of dealers who trade with each
other. Often called OTC markers
◉ Factors in GDP Growth. Answer: Increase in population, increase
in capital, improvement in technology.