Peregrine Exam Review Day 1
Balance Sheet Analysis - ANS- Analysis of assets, liabilities, and equity
Annually or quarterly
Helpful for investors, bankers and brokers
Compliance in Accounting - ANS- Sarbanes act was created in 2002 to protect
shareholders
What are dividends? - ANS- a sum of money paid regularly by a company to its
shareholders out of its profits
_ can be allocated as fixed amount per share - ANS- Dividends
Dividends - ANS- can only be received one or more regular payment stream
Cash dividend - ANS- paid out of currency of the company
Are usually taxable
stock dividend - ANS- Paid out in form of stock
Property - ANS- paid out in form of asset
Interim - ANS- made before a companies annual general meeting and final financial
statement
Common stock - ANS- allows owners to vote at shareholder meetings and receive
dividends
preffered stock - ANS- stock that gives stockholders preference in earnings and other
rights
Growth stock - ANS- earnings grow faster than market average
Dividends rarely paid
Investors buy them
, Startup technology company likely has them
Income stock - ANS- pays higher-than-average dividends compared to other stock
issues
Value stock - ANS- stock from a company which has a low market price considering
historical earning records and value of current assets
Blue Chip Stock - ANS- the stock of a large, well-established and financially sound
company that has operated for many years
Owners of bonds are - ANS- Debt holders, creditors and issuer
Bonds usually have - ANS- variable or fixed interest payments
Bonds are correlated with - ANS- inverse interest rates
T/F Bonds have maturity rates - ANS- T
Bonds must be - ANS- paid back in full or risk default
Which bond is issued by companies? - ANS- Corporate bonds
Companies issue these rather than bank loans - ANS- Corporate bonds
Corporate bonds - ANS- offer lower interest rates
municipal bonds are - ANS- issued by states and municipalities
T/F Municipal bonds are tax free coupon income - ANS- T
Government Bonds - ANS- Certificates sold by the government to raise money with the
guarantee that the purchaser will be paid back later (with interest)
Agency Bonds - ANS- bonds issued by US government agencies
Which coupon is given at discount to par value? - ANS- zero-coupon
zero coupon bond - ANS- generate a return when bond holder is paid in full face when
bond matures
convertible bonds - ANS- Bonds that can be converted into common stock at the
bondholder's option
Balance Sheet Analysis - ANS- Analysis of assets, liabilities, and equity
Annually or quarterly
Helpful for investors, bankers and brokers
Compliance in Accounting - ANS- Sarbanes act was created in 2002 to protect
shareholders
What are dividends? - ANS- a sum of money paid regularly by a company to its
shareholders out of its profits
_ can be allocated as fixed amount per share - ANS- Dividends
Dividends - ANS- can only be received one or more regular payment stream
Cash dividend - ANS- paid out of currency of the company
Are usually taxable
stock dividend - ANS- Paid out in form of stock
Property - ANS- paid out in form of asset
Interim - ANS- made before a companies annual general meeting and final financial
statement
Common stock - ANS- allows owners to vote at shareholder meetings and receive
dividends
preffered stock - ANS- stock that gives stockholders preference in earnings and other
rights
Growth stock - ANS- earnings grow faster than market average
Dividends rarely paid
Investors buy them
, Startup technology company likely has them
Income stock - ANS- pays higher-than-average dividends compared to other stock
issues
Value stock - ANS- stock from a company which has a low market price considering
historical earning records and value of current assets
Blue Chip Stock - ANS- the stock of a large, well-established and financially sound
company that has operated for many years
Owners of bonds are - ANS- Debt holders, creditors and issuer
Bonds usually have - ANS- variable or fixed interest payments
Bonds are correlated with - ANS- inverse interest rates
T/F Bonds have maturity rates - ANS- T
Bonds must be - ANS- paid back in full or risk default
Which bond is issued by companies? - ANS- Corporate bonds
Companies issue these rather than bank loans - ANS- Corporate bonds
Corporate bonds - ANS- offer lower interest rates
municipal bonds are - ANS- issued by states and municipalities
T/F Municipal bonds are tax free coupon income - ANS- T
Government Bonds - ANS- Certificates sold by the government to raise money with the
guarantee that the purchaser will be paid back later (with interest)
Agency Bonds - ANS- bonds issued by US government agencies
Which coupon is given at discount to par value? - ANS- zero-coupon
zero coupon bond - ANS- generate a return when bond holder is paid in full face when
bond matures
convertible bonds - ANS- Bonds that can be converted into common stock at the
bondholder's option
