All of the Following Are Capital Assets with the Exception

question 6

Multiple Choice

All of the following are capital assets with the exception of

• A)Stocks and bonds.
• B)Office furniture used in a business
• C)Monet painting privately held.
• D)Apartment building held for investment.
• E)Personal residence.

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Definitions:

Financial Leverage

A difference between the rate of return on assets and the rate paid to creditors.

Price-Earnings Ratio

A valuation metric that shows the relationship between a company's stock price and its earnings per share.

Dividends

Payments made to shareholders out of a company's profits, often on a regular basis.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, usually with fixed dividends.