The term hedge refers to something that is used ________.

Assume the following financial data: Total earnings (after-tax): $73,300Dividends per share: $2.90Stock price: $49.00Shares outstanding: 33,900Find the firm’s P/E ratio.

A stock has an expected return of 14.20 percent and a beta of 1.4, and the expected return on the market is 11.00 percent. What must the risk-free rate be?

You short-sell 300 shares of Krista’s Ironing Co. now selling for $30 per share. What is your maximum possible gain, ignoring transactions cost?

Given the following financial data: Net income / Sales = 15 percent; Sales / Total assets = 3.1 times; Debt / Total assets = 70 percent; compute return on assets.

Given the following financial data: Net income / Sales = 6 percent; Sales / Total assets = 4.5 times; Debt / Total assets = 49 percent; compute return on equity.

Which of the following are ineffective strategies for producing excess returns if the market is semistrong-form efficient?I. graphing past prices searching for patterns II. watching the daily market movements III. studying the latest analyst’s reports IV. analyzing a firm’s financial statements

Assume you buy 550 shares of stock at $12.60 per share on margin (43 percent). How much would you need to contribute to initiate this position?

Suppose a stock had an initial price of $54 per share, paid a dividend of $2.75 per share during the year, and had an ending share price of $73. Compute the percentage total return.

A stock has produced returns of 28 percent, 10 percent, –18 percent, and 29 percent over the past four years, respectively. What is the geometric average return?