Peregrine Exam Review Day 1|103
Questions and Answers
Balance Sheet Analysis - -Analysis of assets, liabilities, and equity
Annually or quarterly
Helpful for investors, bankers and brokers
-Compliance in Accounting - -Sarbanes act was created in 2002 to protect
shareholders
-What are dividends? - -a sum of money paid regularly by a company to its
shareholders out of its profits
-_ can be allocated as fixed amount per share - -Dividends
-Dividends - -can only be received one or more regular payment stream
-Cash dividend - -paid out of currency of the company
Are usually taxable
-stock dividend - -Paid out in form of stock
-Property - -paid out in form of asset
-Interim - -made before a companies annual general meeting and final
financial statement
-Common stock - -allows owners to vote at shareholder meetings and
receive dividends
-preffered stock - -stock that gives stockholders preference in earnings and
other rights
-Growth stock - -earnings grow faster than market average
Dividends rarely paid
Investors buy them
Startup technology company likely has them
, -Income stock - -pays higher-than-average dividends compared to other
stock issues
-Value stock - -stock from a company which has a low market price
considering historical earning records and value of current assets
-Blue Chip Stock - -the stock of a large, well-established and financially
sound company that has operated for many years
-Owners of bonds are - -Debt holders, creditors and issuer
-Bonds usually have - -variable or fixed interest payments
-Bonds are correlated with - -inverse interest rates
-T/F Bonds have maturity rates - -T
-Bonds must be - -paid back in full or risk default
-Which bond is issued by companies? - -Corporate bonds
-Companies issue these rather than bank loans - -Corporate bonds
-Corporate bonds - -offer lower interest rates
-municipal bonds are - -issued by states and municipalities
-T/F Municipal bonds are tax free coupon income - -T
-Government Bonds - -Certificates sold by the government to raise money
with the guarantee that the purchaser will be paid back later (with interest)
-Agency Bonds - -bonds issued by US government agencies
-Which coupon is given at discount to par value? - -zero-coupon
-zero coupon bond - -generate a return when bond holder is paid in full face
when bond matures
-convertible bonds - -Bonds that can be converted into common stock at the
bondholder's option
-callable bonds - -bonds that the issuing company can redeem (buy back) at
a stated dollar amount prior to maturity
-Puttable bonds - -Are able to be sell back to company before it matures
Questions and Answers
Balance Sheet Analysis - -Analysis of assets, liabilities, and equity
Annually or quarterly
Helpful for investors, bankers and brokers
-Compliance in Accounting - -Sarbanes act was created in 2002 to protect
shareholders
-What are dividends? - -a sum of money paid regularly by a company to its
shareholders out of its profits
-_ can be allocated as fixed amount per share - -Dividends
-Dividends - -can only be received one or more regular payment stream
-Cash dividend - -paid out of currency of the company
Are usually taxable
-stock dividend - -Paid out in form of stock
-Property - -paid out in form of asset
-Interim - -made before a companies annual general meeting and final
financial statement
-Common stock - -allows owners to vote at shareholder meetings and
receive dividends
-preffered stock - -stock that gives stockholders preference in earnings and
other rights
-Growth stock - -earnings grow faster than market average
Dividends rarely paid
Investors buy them
Startup technology company likely has them
, -Income stock - -pays higher-than-average dividends compared to other
stock issues
-Value stock - -stock from a company which has a low market price
considering historical earning records and value of current assets
-Blue Chip Stock - -the stock of a large, well-established and financially
sound company that has operated for many years
-Owners of bonds are - -Debt holders, creditors and issuer
-Bonds usually have - -variable or fixed interest payments
-Bonds are correlated with - -inverse interest rates
-T/F Bonds have maturity rates - -T
-Bonds must be - -paid back in full or risk default
-Which bond is issued by companies? - -Corporate bonds
-Companies issue these rather than bank loans - -Corporate bonds
-Corporate bonds - -offer lower interest rates
-municipal bonds are - -issued by states and municipalities
-T/F Municipal bonds are tax free coupon income - -T
-Government Bonds - -Certificates sold by the government to raise money
with the guarantee that the purchaser will be paid back later (with interest)
-Agency Bonds - -bonds issued by US government agencies
-Which coupon is given at discount to par value? - -zero-coupon
-zero coupon bond - -generate a return when bond holder is paid in full face
when bond matures
-convertible bonds - -Bonds that can be converted into common stock at the
bondholder's option
-callable bonds - -bonds that the issuing company can redeem (buy back) at
a stated dollar amount prior to maturity
-Puttable bonds - -Are able to be sell back to company before it matures
