Series 7 top off

True

True or false: If a company’s convertible bonds were converted into common stock, the effect on the balance sheet would include:

• A reduction in total liabilities

• And increase in shareholder’s equity.

Up and down

When a dividend is declared current liabilities go (UP OR DOWN), and once the dividends are paid current liabilities go (UP or down)

True

True or false:

EPS may be increased by the following

• Tax loss carryforward

• Reduction in corporate income tax rates

• Retirement of outstanding bonds

True

True or false: Current ratio most accurately describes liquidity.

True

True or false: Customers wishing to minimize risk in a common stock portfolio can accomplish minimizing risk by making it so that the largest percentage of the securities in the portfolio are affected differently by economic conditions and the largest percentage of the portfolio consists of common stock.

D

A

C

B

B

B