Which of the following shares would be most likely to trade on the CNQ?A. A large capitalization Canadian bank.
B. An exchange-traded fund.
C. An unlisted Canadian income trust.
D. A small capitalization gold exploration company.
What forms the majority of assets of the Canadian chartered banks?A. Long-term Government of Canada bonds.
B. Corporate equities.
C. Commercial mortgages.
D. Corporate and individual loans.
Why are preferred shares considered to be fixed-income securities?A. Because they pay regular income in the form of dividends.
B. Because they rank pari passu with bonds.
C. Because preferred share prices have an inverse relationship with interest rates.
D. Because they have a maturity date, like bonds.
An investor purchases 300 COY $2.25 retractable preferred shares. The shares are retractable at $32.50 plus accrued and unpaid dividends. At the end of the retraction period, the shares are trading at $31.00. What transaction will automatically appear in the investor’s account?A. None.
B. A sale of 300 shares, and a cash receipt of $9,750 plus accrued dividends.
C. A retraction of 300 shares, and a cash receipt of $9,750 plus accrued dividends.
D. A redemption of 300 shares, and a cash receipt of $9,750 plus accrued dividends.
At what price could an investor purchase this bond?
Referring to Exhibit 1 answer this question: How much interest would an investor receive on a regular interest payment date?
What is the current spread on this bond expressed in basis points?
B. 1.50 basis points.
C. 150 basis points.
D. 175 basis points.
ABC issues $50,000 in commercial paper. Ignoring any other possible transactions, what effect will this have on the balance sheet?
B. Increase in cash of $50,000.
C. Increase in accounts receivable of $50,000.
D. Increase in marketable securities of $50,000.
ABC sells 10,000 widgets for $8.00. What will the balance in the inventory account be after the sale of the widgets, assuming ABC uses the first-in-first-out (FIFO) method of determining the cost of inventories?
ABC prepays $75,000 in rent. Ignoring any other considerations, what effect will this have on current assets?
B. Decrease in cash of $75,000.
C. Increase in prepaid expenses of $75,000.
D. Increase in accounts receivable of $75,000.
The following is a bond quote. Base your answers on a semi-annual bond with a $1,000 face value issued at par and exclude accrued interest.
ABC Company's balance sheet shows the following information:
In addition, ABC's inventory records show that there are 30,000 widgets in stock, and the following inventory transactions occurred during the same year: