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Unit 3 Milestone 3

Unit 3 Milestone 3

Q 1. To raise money to expand his company, Gianni uses his problem-solving skills and sells shares to a small group of investors he knows personally. Which of the following is true in this case? 2. The market price of Golden Inc. stock is $15 per share. The formula for P/E ratio is as follows: P/E ratio = Stock price per share / Earnings per share If the stock earns $3 per share, then its P/E ratio is __________. 3. Miles needs to withdraw $4,500 from his Roth IRA to pay his medical bills. In which of the following scenarios is the money withdrawn from the Roth IRA considered a qualifying distribution for Miles? 4. A pharmaceutical company issues bonds to raise money for expansion. Which of the following is true in this scenario? 5. At what price is a stock purchased if an investor places a market order to purchase stock?

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1. Gianni's company is a privately-held company. 2. 5 3. Miles is 65 years old and has been investing in the Roth IRA for the last 10 years. 4. The interest the company pays to bondholders is tax deductible for the company. 6. Alternative financial lenders do not require the credit history of an individual to approve a loan.