BA 323 SDSU EXAM 2 2025 UPDATE QUESTIONS AND
CORRECT VERIFIED ANSWERS ALREADY GRADED A+
(BRAND NEW VISION)
A method of valuing a target company that applies a market determined multiple to net income,
earnings per share, sales, book value, and so forth. Common multiples are:
P/E, P/CF, P/Sales
Earnings per share * PE ratio - answersMarket Multiple Analysis
an attempt by a person or group to gain control of a firm or win a corporate vote. **Most are
settled** - answersproxy fight
Stock sold to public. - answersClass A stock
Hybrid security with features of a stock and bond.
Like bonds, preferred stockholders receive a fixed dividend that must be paid before dividends
are paid to common stockholders
However, companies can omit preferred dividend payments without fear of pushing the firm
into bankruptcy. - answerspreferred stock
Vp = D/rP
Dividend payment + required rate of return on common stock. - answersValue of preferred
stock equation
, Typically retained by the company's insiders. Often have multiple votes per share. **Lots of
this? Poor corporate governance!** - answersClass B Stock
A qualified retirement plan sponsored by an employer.
- Typically the employer will match your savings.
- This is like free money!
- Remember to diversify your holdings - answers401k
Individual Retirement Account.
Traditional: avoid paying taxes (federal and state) today, but have to pay taxes in the future.
Roth IRA: pay taxes today, but never how to pay taxes on money in the future, tax-free. -
answersTraditional IRA
similar to a 401k, but only employees of certain nonprofit organizations can participate -
answers403b
Stocks; 6-7%?? – answers Does stocks or bonds have higher rates of return over time? What is
the average real rate of return for stocks for the past 100 years?
1. Small-cap
2. Large-cap
3. Corporate Bonds
4. T-Bills
5. Cash (Money market) - answersBe able to rank the following investment categories by
highest to lowest rate of return: T-bills, cash, corporate bonds, small-cap stocks, large-cap
stocks
CORRECT VERIFIED ANSWERS ALREADY GRADED A+
(BRAND NEW VISION)
A method of valuing a target company that applies a market determined multiple to net income,
earnings per share, sales, book value, and so forth. Common multiples are:
P/E, P/CF, P/Sales
Earnings per share * PE ratio - answersMarket Multiple Analysis
an attempt by a person or group to gain control of a firm or win a corporate vote. **Most are
settled** - answersproxy fight
Stock sold to public. - answersClass A stock
Hybrid security with features of a stock and bond.
Like bonds, preferred stockholders receive a fixed dividend that must be paid before dividends
are paid to common stockholders
However, companies can omit preferred dividend payments without fear of pushing the firm
into bankruptcy. - answerspreferred stock
Vp = D/rP
Dividend payment + required rate of return on common stock. - answersValue of preferred
stock equation
, Typically retained by the company's insiders. Often have multiple votes per share. **Lots of
this? Poor corporate governance!** - answersClass B Stock
A qualified retirement plan sponsored by an employer.
- Typically the employer will match your savings.
- This is like free money!
- Remember to diversify your holdings - answers401k
Individual Retirement Account.
Traditional: avoid paying taxes (federal and state) today, but have to pay taxes in the future.
Roth IRA: pay taxes today, but never how to pay taxes on money in the future, tax-free. -
answersTraditional IRA
similar to a 401k, but only employees of certain nonprofit organizations can participate -
answers403b
Stocks; 6-7%?? – answers Does stocks or bonds have higher rates of return over time? What is
the average real rate of return for stocks for the past 100 years?
1. Small-cap
2. Large-cap
3. Corporate Bonds
4. T-Bills
5. Cash (Money market) - answersBe able to rank the following investment categories by
highest to lowest rate of return: T-bills, cash, corporate bonds, small-cap stocks, large-cap
stocks
