CSC Fundamental and Technical Analysis 2

Question 1

Which ratio measures how efficiently a company uses its assets to generate sales?

Accepted Answer

Asset turnover ratio

Answer

Asset turnover ratio (sales divided by total assets) measures how efficiently management uses assets to generate revenue.

Question 2

In technical analysis, a 'death cross' occurs when:

Accepted Answer

The 50-day moving average crosses below the 200-day moving average

Answer

A death cross is a bearish signal where the shorter-term 50-day moving average crosses below the longer-term 200-day moving average.

Question 3

The Gordon Growth Model is used to value a stock based on:

Accepted Answer

A constant growth rate of dividends in perpetuity

Answer

The Gordon Growth Model values a stock as the next dividend divided by the difference between the required return and the constant dividend growth rate.

Question 4

Which of the following best describes 'support' in technical analysis?

Accepted Answer

A price level where buying interest is strong enough to prevent further decline

Answer

Support is a price level at which demand is strong enough to prevent the price from falling further, acting as a floor.

Question 5

Enterprise Value (EV) is calculated as market capitalization plus:

Accepted Answer

Total debt minus cash and cash equivalents

Answer

EV = Market Cap + Total Debt − Cash and Cash Equivalents, representing the theoretical takeover price of a company.

CSC - Canadian Securities Course Practice Test

CSC - Canadian Securities Course Practice Test

CSC Fundamental and Technical Analysis 2