TRUE-FALSE . (1) Short sales are often accompanied by stop sell orders. (2) Clos

ID: 2628746 • Letter: T

Question

TRUE-FALSE.

(1) Short sales are often accompanied by stop sell orders.

(2) Closed-end funds are capitalized through a one-time offering of stocks or bonds.

(3) In Treasury Bill auctions, bids are ranked from lowest to highest yield and all bids are filled at the lowest yield.

(4) The plowback ratio is the growth rate of the company multiplied by the return on assets multiplied by the leverage ratio.

(5) For the average firm in the market, a test of liquidity is if the quick ratio (acid-test ratio) is approximately 1.0X.

(6) The market value of a company is the net worth after selling off assets and repaying all debts.

true

(3) In Treasury Bill auctions, bids are ranked from lowest to highest yield and all bids are filled at the lowest yield.

(4) The plowback ratio is the growth rate of the company multiplied by the return on assets multiplied by the leverage ratio.

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