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A company has two open seats,Seat A and Seat B,on its board of directors.There are 6 candidates vying for these 2 positions.There will be a single election to determine the winner of both open seats.As the owner of 100 shares of stock,you will receive one vote per share for each open seat.You decide to cast all 200 of your votes for a single candidate.What is this type of voting called?


A) democratic
B) cumulative
C) straight
D) deferred
E) proxy

F) A) and C)
G) D) and E)

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Explain the primary change that occurred in the structure of the NYSE in 2006 and how that change affected the exchange members.

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In 2006,the NYSE became a publicly owned...

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-The Stiller Corporation will pay a $3.80 per share dividend next year.The company pledges to increase its dividend by 2.4 percent indefinitely.How much are you willing to pay to purchase this company's stock today if you require a 6.9 percent return on your investment? A) $55.07 B) $63.09 C) $72.22 D) $78.47 E) $84.44 -The Stiller Corporation will pay a $3.80 per share dividend next year.The company pledges to increase its dividend by 2.4 percent indefinitely.How much are you willing to pay to purchase this company's stock today if you require a 6.9 percent return on your investment?


A) $55.07
B) $63.09
C) $72.22
D) $78.47
E) $84.44

F) A) and C)
G) B) and D)

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Callander Enterprises stock is listed on NASDAQ.The firm is planning to issue some new equity shares for sale to the general public.This sale will occur in which one of the following markets?


A) private
B) auction
C) exchange floor
D) secondary
E) primary

F) A) and E)
G) A) and D)

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-The preferred stock of Rail Lines,Inc. ,pays an annual dividend of $12.25 and sells for $59.70 a share.What is the rate of return on this security? A) 19.38 percent B) 19.63 percent C) 20.52 percent D) 20.72 percent E) 20.84 percent -The preferred stock of Rail Lines,Inc. ,pays an annual dividend of $12.25 and sells for $59.70 a share.What is the rate of return on this security?


A) 19.38 percent
B) 19.63 percent
C) 20.52 percent
D) 20.72 percent
E) 20.84 percent

F) D) and E)
G) B) and E)

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-Harvey County Choppers,Inc.is experiencing rapid growth.The company expects dividends to grow at 25 percent per year for the next 7 years before leveling off to 7 percent into perpetuity.The required return on the stock is 12 percent.What is the current stock price if the annual dividend share that was just paid was $1.05? A) $60.15 B) $64.36 C) $67.37 D) $72.11 E) $75.19 -Harvey County Choppers,Inc.is experiencing rapid growth.The company expects dividends to grow at 25 percent per year for the next 7 years before leveling off to 7 percent into perpetuity.The required return on the stock is 12 percent.What is the current stock price if the annual dividend share that was just paid was $1.05?


A) $60.15
B) $64.36
C) $67.37
D) $72.11
E) $75.19

F) B) and D)
G) A) and B)

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An individual on the floor of the NYSE who owns a trading license and buys and sells for his or her personal account is called a:


A) floor trader.
B) exchange customer.
C) specialist.
D) floor broker.
E) market maker.

F) A) and D)
G) A) and C)

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-Winter Time Adventures is going to pay an annual dividend of $2.86 a share on its common stock next year.This year,the company paid a dividend of $2.75 a share.The company adheres to a constant rate of growth dividend policy.What will one share of this common stock be worth five years from now if the applicable discount rate is 11.7 percent? A) $43.45 B) $43.87 C) $44.15 D) $45.19 E) $47.00 -Winter Time Adventures is going to pay an annual dividend of $2.86 a share on its common stock next year.This year,the company paid a dividend of $2.75 a share.The company adheres to a constant rate of growth dividend policy.What will one share of this common stock be worth five years from now if the applicable discount rate is 11.7 percent?


A) $43.45
B) $43.87
C) $44.15
D) $45.19
E) $47.00

F) All of the above
G) A) and E)

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-Home Care Providers is paying an annual dividend of $1.10 every other year.The last dividend was paid two years ago.The firm will continue this policy until 3 more dividend payments have been paid.One year after the last dividend normal payment,the company plans to pay a final liquidating dividend of $40 per share.What is the current market value of this stock if the required return is 17 percent? A) $18.92 B) $20.74 C) $23.16 D) $24.14 E) $24.53 -Home Care Providers is paying an annual dividend of $1.10 every other year.The last dividend was paid two years ago.The firm will continue this policy until 3 more dividend payments have been paid.One year after the last dividend normal payment,the company plans to pay a final liquidating dividend of $40 per share.What is the current market value of this stock if the required return is 17 percent?


A) $18.92
B) $20.74
C) $23.16
D) $24.14
E) $24.53

F) D) and E)
G) None of the above

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The person on the floor of the NYSE who executes buy and sell orders on behalf of customers is called a(n) :


A) floor trader.
B) dealer.
C) specialist.
D) executor.
E) commission broker.

F) C) and D)
G) A) and E)

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A stock pays a constant annual dividend and sells for $56.10 a share.If the market rate of return on this stock is 12.5 percent,what is the amount of the next annual dividend?


A) $5.67
B) $5.94
C) $6.21
D) $6.84
E) $7.30

F) B) and D)
G) B) and C)

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-Dexter Metals,paid its first annual dividend yesterday in the amount of $0.18 a share.The company plans to double each annual dividend payment for the next 3 years.After that time,it plans to pay $1.25 a share for 2 years than then pay a constant dividend of $1.60 per share indefinitely.What is one share of this stock worth today if the market rate of return on similar securities is 10.24 percent? A) $12.32 B) $12.77 C) $13.20 D) $14.26 E) $14.79 -Dexter Metals,paid its first annual dividend yesterday in the amount of $0.18 a share.The company plans to double each annual dividend payment for the next 3 years.After that time,it plans to pay $1.25 a share for 2 years than then pay a constant dividend of $1.60 per share indefinitely.What is one share of this stock worth today if the market rate of return on similar securities is 10.24 percent?


A) $12.32
B) $12.77
C) $13.20
D) $14.26
E) $14.79

F) A) and B)
G) B) and D)

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Which of the following features do preferred shareholders and bondholders frequently have in common? I.lack of voting rights II.conversion option into common stock III.annuity payments IV.fixed liquidation value


A) I and II only
B) III and IV only
C) II,III,and IV only
D) I,III,and IV only
E) I,II,III,and IV

F) A) and D)
G) A) and B)

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-Great Lakes Health Care common stock offers an expected total return of 9.2 percent.The last annual dividend was $2.10 a share.Dividends increase at a constant 2.6 percent per year.What is the dividend yield? A) 3.75 percent B) 4.20 percent C) 4.55 percent D) 5.25 percent E) 6.60 percent -Great Lakes Health Care common stock offers an expected total return of 9.2 percent.The last annual dividend was $2.10 a share.Dividends increase at a constant 2.6 percent per year.What is the dividend yield?


A) 3.75 percent
B) 4.20 percent
C) 4.55 percent
D) 5.25 percent
E) 6.60 percent

F) B) and D)
G) None of the above

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A floor broker on the NYSE does which one of the following?


A) supervises the commission brokers for a financial firm
B) trades for his or her personal inventory
C) executes orders on behalf of a commission broker
D) maintains an inventory and takes the role of a specialist
E) is charged with maintaining a liquid,orderly market

F) C) and E)
G) B) and D)

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-Suppose you know a company's stock currently sells for $85 per share and the required return on the stock is 10 percent.You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield.What is the current dividend if it's the company's policy to always maintain a constant growth rate in its dividends? A) $3.18 B) $4.05 C) $4.37 D) $4.50 E) $4.64 -Suppose you know a company's stock currently sells for $85 per share and the required return on the stock is 10 percent.You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield.What is the current dividend if it's the company's policy to always maintain a constant growth rate in its dividends?


A) $3.18
B) $4.05
C) $4.37
D) $4.50
E) $4.64

F) A) and E)
G) B) and E)

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High Country Builders currently pays an annual dividend of $1.35 and plans on increasing that amount by 2.5 percent each year.Valley High Builders currently pays an annual dividend of $1.20 and plans on increasing its dividend by 3 percent annually.Given this information,you know for certain that the stock of High Country Builders' has a higher ______ than the stock of Valley High Builders.


A) market price.
B) dividend yield.
C) capital gains yield.
D) total return.
E) The answer cannot be determined based on the information provided.

F) A) and B)
G) A) and C)

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You cannot attend the shareholder's meeting for Alpha United so you authorize another shareholder to vote on your behalf.What is the granting of this authority called?


A) altering
B) cumulative voting
C) straight voting
D) indenture agreement
E) voting by proxy

F) A) and B)
G) C) and D)

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Which one of the following sets of dividend payments best meets the definition of two-stage growth as it applies to the two-stage dividend growth model?


A) no dividends for 5 years,then increasing dividends forever
B) $1 per share annual dividend for 2 years,then $1.25 annual dividends forever
C) decreasing dividends for 6 years followed by one final liquidating dividend payment
D) dividends payments which increase by 2,3,and 4 percent respectively for 3 years followed by a constant dividend thereafter
E) dividend payments which increase by 10 percent per year for 5 years followed by dividends which increase by 3 percent annually thereafter

F) A) and B)
G) B) and C)

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-Home Canning Products common stock sells for $41.00 a share and has a market rate of return of 12.8 percent.The company just paid an annual dividend of $1.15 per share.What is the dividend growth rate? A) 8.29 percent B) 8.45 percent C) 9.23 percent D) 9.67 percent E) 9.72 percent -Home Canning Products common stock sells for $41.00 a share and has a market rate of return of 12.8 percent.The company just paid an annual dividend of $1.15 per share.What is the dividend growth rate?


A) 8.29 percent
B) 8.45 percent
C) 9.23 percent
D) 9.67 percent
E) 9.72 percent

F) B) and C)
G) A) and E)

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