2023年公司理财精要题库

Chapter07EquityMarketsandStockValuation

MultipleChoiceQuestions

1.

Whatisthenamegiventothemodelthatcomputesthepresentvalueofastockbydividingnextyear'sannualdividendamountbythedifferencebetweenthediscountrateandtherateofchangeintheannualdividendamount?

A.

Stockpricingmodel

B.

Equitypricingmodel

C.

Capitalgainmodel

D.

Dividendgrowthmodel

E.

Presentvaluemodel

2.

Thedividendyieldisdefinedas:

A.

thecurrentannualcashdividenddividedbythecurrentmarketpricepershare.

B.

thecurrentannualcashdividenddividedbythecurrentbookvaluepershare.

C.

nextyear'sexpectedcashdividenddividedbythecurrentmarketpricepershare.

D.

nextyear'sexpectedcashdividenddividedbythecurrentbookvaluepershare.

E.

nextyear'sexpectedcashdividenddividedbynextyear'sexpectedmarketpricepershare.

3.

Thecapitalgainsyieldequalswhichoneofthefollowing?

A.

Totalyield

B.

Currentdiscountrate

C.

Marketrateofreturn

D.

Dividendyield

E.

Dividendgrowthrate

4.

Whichoneofthefollowingtypesofsecuritieshasnopriorityinabankruptcyproceeding?

A.

Convertiblebond

B.

Seniordebt

C.

Commonstock

D.

Preferredstock

E.

Straightbond

5.

Maryowns100sharesofstock.Eachshareentitleshertoonevoteperopenseatontheboardofdirectors.Assumethereare3openseatsinthecurrentelectionandMarycastsall300ofhervotesforasinglecandidate.Whatisthetermusedtodescribethistypeofvoting?

A.

Proxy

B.

Aggregate

C.

Cumulative

D.

Straight

E.

Condensed

6.

Therearetwoopenseatsontheboardofdirectors.Iftwoseparatevotesoccurtoelectthenewdirectors,thefirmisusingatypeofvotingthatisbestdescribedas_____voting.

A.

simultaneous

B.

straight

C.

proxy

D.

cumulative

E.

sequential

7.

Katecouldnotattendthelastshareholdersmeetingandthusshegrantedtheauthoritytovoteonherbehalftothemanagersofthefirm.WhichoneofthefollowingtermsisusedtodescribethemethodbywhichKate'sshareswerevoted?

A.

Straight

B.

Cumulative

C.

Consent-form

D.

Proxy

E.

Inabsentia

8.

Dividendsarebestdefinedas:

A.

cashpaymentstoshareholders.

B.

cashpaymentstoeitherbondholdersorshareholders.

C.

cashorstockpaymentstoshareholders.

D.

cashorstockpaymentstoeitherbondholdersorshareholders.

E.

distributionsofstocktocurrentshareholders.

9.

Whichoneofthefollowinggenerallypaysafixeddividend,receivesfirstpriorityindividendpayment,andmaintainstherighttoadividendpayment,evenifthatpaymentisdeferred?

A.

Cumulativecommon

B.

Noncumulativecommon

C.

Noncumulativepreferred

D.

Cumulativepreferred

E.

Seniorcommon

10.

Newlyissuedsecuritiesaresoldtoinvestorsinwhichoneofthefollowingmarkets?

A.

Proxy

B.

Statedvalue

C.

Inside

D.

Secondary

E.

Primary

11.

Whatisthemarketcalledthatallowsshareholderstoreselltheirsharestootherinvestors?

A.

Primary

B.

Proxy

C.

Secondary

D.

Inside

E.

Initial

12.

Anagentwhobuysandsellssecuritiesfrominventoryiscalleda:

A.

floortrader.

B.

dealer.

C.

commissionbroker.

D.

broker.

E.

floorbroker.

13.

Abrokerisanagentwho:

A.

tradesonthefloorofanexchangeforhimselforherself.

B.

buysandsellsfrominventory.

C.

offersnewsecuritiesforsaletodealersonly.

D.

whoisreadytobuyorsellatanytime.

E.

bringsbuyersandsellerstogether.

14.

AnypersonwhoownsalicensetotradeontheNYSEiscalleda:

A.

dealer.

B.

floortrader.

C.

specialist.

D.

member.

E.

proxy.

15.

ApersonwhoexecutescustomerorderstobuyandsellsecuritiesontheflooroftheNYSEiscalleda:

A.

floortrader.

B.

specialist.

C.

runner.

D.

commissionbroker.

E.

marketmaker.

16.

Aspecialistisa(n):

A.

employeewhoexecutesorderstobuyandsellforclientsofhisorherbrokeragefirm.

B.

individualwhotradesonthefloorofanexchangeforhisorherpersonalaccount.

C.

NYSEmemberwhofunctionsasadealerforalimitednumberofsecurities.

D.

brokerwhobuysandsellssecuritiesfromamarketmaker.

E.

traderwhoonlydealswithprimaryofferings.

17.

Anindividualwhoexecutesbuyandsellordersonthefloorofanexchangeforafeeiscalleda:

A.

floorbroker.

B.

specialist.

C.

floortrader.

D.

proxy.

E.

flowspecialist.

18.

TheelectronicsystemthattransmitsbuyandsellordersdirectlytoaspecialistontheflooroftheNYSEiscalled:

A.

NASDAQ.

B.

SuperDOT.

C.

TICKER.

D.

ECN.

E.

ORDFLOW.

19.

TheownerofatradinglicensewhotradesontheflooroftheNYSEforhisorherpersonalaccountiscalleda(n):

A.

specialist.

B.

independentbroker.

C.

floortrader.

D.

stand-aloneagent.

E.

dealer.

20.

Thestreamofcustomerinstructionstobuyandsellsecuritiesiscalledthe:

A.

orderflow.

B.

marketmaker.

C.

executionstream.

D.

operationsflow.

E.

buyer'sstream.

21.

Thespecificlocationonthefloorofanexchangewhereaparticularsecurityistradediscalleda:

A.

boxoffice.

B.

figure6.

C.

specialist'spost.

D.

tradingbooth.

E.

seat.

22.

Insidequotesaredefinedasthe:

A.

bidandaskedpricespresentedbyNYSEspecialists.

B.

lastbidandaskedpriceofferedpriortothemarketclose.

C.

lowestaskedandhighestbidoffers.

D.

dailyopeningbidandaskedquotes.

E.

lasttradedbidandaskedprices.

23.

WhichoneofthefollowingisawebsitethatenablesLestertosellhissharesofABCstockdirectlytoMarti?

A.

SuperDOT

B.

POST

C.

ECN

D.

SEAT

E.

eNET

24.

Whichoneofthefollowingwillincreasethecurrentvalueofastock?

A.

Decreaseinthedividendgrowthrate

B.

Increaseintherequiredreturn

C.

Increaseinthemarketrateofreturn

D.

Decreaseintheexpecteddividendfornextyear

E.

Increaseinthecapitalgainsyield

25.

Thepriceofastockatyear4canbeexpressedas:

A.

D0/(R+G4).

B.

D0(1+R)5.

C.

D1(1+R)5.

D.

D4/(R-g).

E.

D5/(R-g).

26.

Delfino'sexpectstopayanannualdividendof$1.50persharenextyear.Whatistheanticipateddividendforyear5ifthefirmincreasesitsdividendby2percentannually?

A.

$1.50(1.02)1

B.

$1.50(1.02)2

C.

$1.50(1.02)3

D.

$1.50(1.02)4

E.

$1.50(1.02)5

27.

Therequiredreturnonastockisequaltowhichoneofthefollowingifthedividendonthestockdecreasesby1percentperyear?

A.

(P0/D1)-g

B.

(D1/P0)/g

C.

Dividendyield+capitalgainsyield

D.

Dividendyield-capitalgainsyield

E.

Dividendyieldcapitalgainsyield

28.

DonutsDelitejustpaidanannualdividendof$1.10ashare.Thefirmexpectstoincreasethisdividendby8percentperyearthefollowing3yearsandthendecreasethedividendgrowthto2percentannuallythereafter.Whichoneofthefollowingisthecorrectcomputationofthedividendforyear7?

A.

($1.10)(1.083)(1.024)

B.

($1.10)(1.083)(1.023)

C.

($1.10)(1.08)3(1.02)4

D.

($1.10)(1.08)3(1.02)3

E.

($1.10)(1.08)3(1.02)2

29.

Aardvark,Inc.paysaconstantannualdividend.AttheendoftradingonWednesday,thepriceofitsstockwas$28.Attheendoftradingonthefollowingday,thestockpricewas$27.Asaresultofthedeclineinthestock'sprice,thedividendyield_____whilethecapitalgainsyield_____.

A.

remainedconstant;remainedconstant

B.

increased;remainedconstant

C.

increased;increased

D.

decreased;remainedconstant

E.

decreased;decreased

30.

Whichoneofthefollowingmustequalzeroifafirmpaysaconstantannualdividend?

A.

Dividendyield

B.

Capitalgainsyield

C.

Totalreturn

D.

Marketvaluepershare

E.

Bookvaluepershare

31.

Thedividendgrowthmodelcanbeusedtovaluethestockoffirmswhichpaywhichtypeofdividends?

I.constantannualdividend

II.annualdividendwithaconstantincreasingrateofgrowth

III.annualdividendwithaconstantdecreasingrateofgrowth

IV.zerodividend

A.

Ionly

B.

IIonly

C.

IIandIIIonly

D.

I,II,andIIIonly

E.

I,II,III,andIV

32.

Kateownsastockwithamarketpriceof$31pershare.Thisstockpaysaconstantannualdividendof$0.60pershare.Ifthepriceofthestocksuddenlyincreasesto$36ashare,youwouldexpectthe:

I.dividendyieldtoincrease.

II.dividendyieldtodecrease.

III.capitalgainsyieldtoincrease.

IV.capitalgainsyieldtodecrease.

A.

Ionly

B.

IIonly

C.

IIIonly

D.

IandIIIonly

E.

IIandIVonly

33.

Computingthepresentvalueofagrowingperpetuityismostsimilartocomputingthecurrentvalueofwhichoneofthefollowing?

A.

Non-dividend-payingstock

B.

Stockwithaconstantdividend

C.

Stockwithirregulardividends

D.

Stockwithaconstantgrowthdividend

E.

Stockwithgrowingdividendsforalimitedperiodoftime

34.

JensenShippinghasfouropenseatsonitsboardofdirectors.Howmanyshareswillashareholderneedtocontroltoensurethathisorhercandidateiselectedtotheboardgiventhefactthatthefirmusesstraightvoting?Assumeoneshareequalsonevote.

A.

20percentofthesharesplusonevote

B.

25percentofthesharesplusonevote

C.

1/3ofthesharesplusonevote

D.

50percentofthesharesplusonevote

E.

51percentofthesharesplusonevote

35.

Gleason,Inc.electsitsboardofdirectorsonastaggeredbasisusingcumulativevoting.Thisimpliesthat:

A.

iftherearetwoopenseats,thenthecandidatewiththehighestnumberofvotesandthecandidatewiththelowestnumberofvoteswillbeselected.

B.

thecandidatesfortheopenseatsarevotedforinindividualelections.

C.

allopenpositionsarefilledwithoneroundofvoting,assumingtherearenotievotes.

D.

shareholderscanaccumulatetheirvotesovermultipleyearsandcastallthosevotesinoneelection.

E.

thefirm'sentireboardofdirectorsiselectedannuallyinonecombinedelection.

36.

Whichoneofthefollowingstatementsiscorrect?

A.

Fromalegalperspective,preferredstockisaformofcorporateequity.

B.

Allclassesofstockmusthaveequalvotingrightspershare.

C.

Commonshareholderselectthecorporatedirectorswhilethepreferredshareholdersvoteonmergersandacquisitions.

D.

Dividendsaretax-freeincomeforindividualinvestors.

E.

Shareholdersprefernoncumulativedividendsovercumulativedividends.

37.

Whichoneofthefollowingstatementsiscorrect?

A.

Bothpreferredstockandcorporatebondscanbecallable.

B.

Bothpreferredstockandcorporatebondshaveastatedliquidationvalueof$1,000each.

C.

Interestpaymentstobondholdersaswellasdividendpaymentstopreferredshareholdersaretaxdeductibleexpensesfortheissuingfirm.

D.

Bondholdersgenerallyreceiveafixedpaymentwhilepreferredshareholdersreceiveavariablepayment.

E.

Preferredshareholdersreceivepreferentialtreatmentoverbondholdersinaliquidation.

38.

Ifshareholdersaregrantedapreemptiverighttheywill:

A.

begiventhechoiceofreceivingdividendseitherincashorinadditionalsharesofstock.

B.

bepaiddividendspriortothepreferredshareholdersduringthepreemptiveperiod.

C.

beentitledtotwovotespershareofstock.

D.

beabletochoosethetimingandamountofanyfuturedividends.

E.

havepriorityinthepurchaseofanynewlyissuedshares.

39.

Onwhichoneofthefollowingdatesdodividendsbecomealiabilityoftheissuerforaccountingpurposes?

A.

Firstdayofthefiscalyearinwhichthedividendisexpectedtobepaid

B.

Twelvemonthspriortotheexpecteddividendpaymentdate

C.

Onthedeclarationdate

D.

Onthedateofrecord

E.

Onthedateofpayment

40.

Dividendsarewhichoneofthefollowing?

A.

Payableatthediscretionofafirm'spresident

B.

Treatedasatax-deductibleexpensetothepayingfirm

C.

Paidoutofaftertaxprofits

D.

Paidtoholdersofrecordasofthedeclarationdate

E.

Onlypartiallytaxabletohigh-incomeindividualshareholders

41.

Youhaveagreedtopayafivepercentcommissiontoyourbestfriendifhecanlocateabuyerforyourcar.Thisarrangementismostsimilartothecompensationarrangementforwhichoneoftheseindividualswhoisinvolvedwiththestockmarket?

A.

Specialist

B.

Floortrader

C.

Marketmaker

D.

Commissionbroker

E.

Dealer

42.

TobeamemberoftheNYSE,youmust:

A.

beaprimarydealer.

B.

buyaseat.

C.

ownatradinglicense.

D.

beregisteredasafloortrader.

E.

beaspecialist.

43.

WhichoneofthefollowingplayersontheflooroftheNYSEisobligatedtomaintainafair,orderlymarketforalimitednumberofsecurities?

A.

Specialist

B.

Floortrader

C.

$2broker

D.

Commissionbroker

E.

Floorbroker

44.

TheNYSE:

A.

presentlyconductsallofitstradingthroughSuperDOT.

B.

isadealermarket.

C.

isinthebusinessofattractingorderflow.

D.

issolelyaprimarymarket.

E.

isbasedonamultiplemarketmakersystem.

45.

WhichoneofthefollowingpartiesontheNYSEfloorpostbidandaskedprices?

A.

Floortraders

B.

Specialists

C.

Floorbrokers

D.

Commissionbrokers

E.

Feebrokers

46.

ManyofthesmallersellorderssenttotheflooroftheNYSEare:

A.

handledbythefloortraders.

B.

purchasedbythecommissionbrokers.

C.

electronicallytransmittedtothespecialists.

D.

executedonanECN.

E.

executedintheprimarymarket.

47.

Ifatradeismade"inthecrowd",thetradehasoccurred:

A.

betweenabrokerandaspecialist.

B.

betweentwobrokers.

C.

electronicallyonNASDAQ.

D.

onSuperDOT.

E.

onanECN.

48.

ThemoreactivelytradedlargecompaniesthatarelistedonNASDAQaretradedinwhichoneoftheNASDAQmarkets?

A.

National

B.

Capital

C.

Regional

D.

GlobalSelect

E.

Global

49.

WhichoneofthefollowingfeaturesappliestoNASDAQbutnottheNYSE?

A.

Tradinginthecrowd

B.

Multiplemarketmakersystem

C.

SuperDot

D.

Brokermarket

E.

Physicaltradingfloor

50.

CompaniescanlisttheirstockonwhichoneofthefollowingwithouthavingtomeetlistingrequirementsorfilingfinancialstatementswiththeSEC?

A.

NASDAQCapitalMarket

B.

Over-the-CounterBulletinBoard

C.

Pinksheets

D.

NASDAQGlobalMarket

E.

NYSE

51.

KellerMetalscommonstockissellingfor$36ashareandhasadividendyieldof3.2percent.Whatisthedividendamount?

A.

$0.32

B.

$1.15

C.

$3.49

D.

$11.25

E.

$11.52

52.

TheGlassCeilingpaidanannualdividendof$2.20persharelastyear.Managementjustannouncedthatfuturedividendswillincreaseby2.8percentannually.Whatistheamountoftheexpecteddividendinyear5?

A.

$2.39

B.

$2.41

C.

$2.46

D.

$2.53

E.

$2.58

53.

ThePancakeHousepaysaconstantannualdividendof$1.25pershare.Howmuchareyouwillingtopayforoneshareifyourequirea15percentrateofreturn?

A.

$7.86

B.

$8.33

C.

$10.87

D.

$11.04

E.

$11.38

54.

ShorelineFoodspaysaconstantannualdividendof$1.60ashareandcurrentlysellsfor$28.50ashare.Whatistherateofreturn?

A.

4.56percent

B.

5.39percent

C.

5.61percent

D.

6.63percent

E.

6.91percent

55.

ThecommonstockofGreenGardenFlowersissellingfor$24ashare.Thecompanypaysaconstantannualdividendandhasatotalreturnof3.8percent.Whatistheamountofthedividend?

A.

$0.38

B.

$0.76

C.

$0.91

D.

$1.38

E.

$1.54

56.

HealthyFoodsjustpaiditsannualdividendof$1.45ashare.Thefirmrecentlyannouncedthatallfuturedividendswillbeincreasedby2.8percentannually.Whatisoneshareofthisstockworthtoyouifyourequirea14percentrateofreturn?

A.

$12.56

B.

$12.95

C.

$13.31

D.

$13.68

E.

$14.07

57.

Plastics,Inc.willpayanannualdividendof$1.85nextyear.Thecompanyjustannouncedthatfuturedividendswillbeincreasingby2.25percentannually.Howmuchareyouwillingtopayforoneshareofthisstockifyourequirea16percentreturn?

A.

$13.45

B.

$13.61

C.

$13.76

D.

$14.02

E.

$14.45

58.

ThePrintingCompanystockissellingfor$32.60asharebasedona14percentrateofreturn.Whatistheamountofthenextannualdividendifthedividendsareincreasingby2.5percentannually?

A.

$3.48

B.

$3.52

C.

$3.57

D.

$3.66

E.

$3.75

59.

ThecommonstockofMid-TowneMoversissellingfor$33ashareandhasa9percentrateofreturn.Thegrowthrateofthedividendsis1percentannually.Whatistheamountofthenextannualdividend?

A.

$2.58

B.

$2.61

C.

$2.64

D.

$2.67

E.

$2.70

60.

Delphin'sMarinaisexpectedtopayanannualdividendof$0.58nextyear.Thestockissellingfor$8.53ashareandhasatotalreturnof12percent.Whatisthedividendgrowthrate?

A.

3.82percent

B.

4.03percent

C.

4.28percent

D.

5.20percent

E.

5.49percent

61.

KlausToysjustpaiditsannualdividendof$1.40.Therequiredreturnis16percentandthedividendgrowthrateis2percent.Whatistheexpectedvalueofthisstockfiveyearsfromnow?

A.

$11.04

B.

$11.26

C.

$11.67

D.

$12.41

E.

$12.58

62.

Thismorning,youpurchasedastockthatwillpayanannualdividendof$1.90persharenextyear.Yourequirea12percentrateofreturnandtheannualdividendincreasesat3.5percentannually.Whatwillyourcapitalgainbeonthisstockifyousellitthreeyearsfromnow?

A.

$2.43

B.

$2.51

C.

$2.63

D.

$2.87

E.

$2.92

63.

BlackwellInkislosingsignificantmarketshareandthusitsmanagershavedecidedtodecreasethefirm'sannualdividend.Thelastannualdividendwas$0.90asharebutallfuturedividendswillbedecreasedby5percentannually.Whatisashareofthisstockworthtodayatarequiredreturnof15percent?

A.

$4.07

B.

$4.28

C.

$4.49

D.

$4.72

E.

$4.95

64.

LameyHeadstonesincreasesitsannualdividendby1.5percentannually.Thestocksellsfor$28.40ashareatarequiredreturnof14percent.Whatistheamountofthelastdividendthiscompanypaid?

A.

$3.50

B.

$3.55

C.

$3.60

D.

$3.65

E.

$3.70

65.

ThecommonstockofTastyTreatsisvaluedat$10.80ashare.Thecompanyincreasesitsdividendby8percentannuallyandexpectsitsnextdividendtobe$0.20pershare.Whatisthetotalrateofreturnonthisstock?

A.

8.64percent

B.

9.12percent

C.

9.40percent

D.

9.85percent

E.

10.64percent

66.

RiverRock,Inc.justpaidanannualdividendof$2.80.Thecompanyhasincreaseditsdividendby2.5percentayearforthepasttenyearsandexpectstocontinuedoingso.Whatwillashareofthisstockbeworthsixyearsfromnowiftherequiredreturnis16percent?

A.

$23.60

B.

$24.65

C.

$25.08

D.

$25.50

E.

$26.90

67.

TheCartWheelplanstopayanannualdividendof$1.20persharenextyear,$1.00pershareayearforthefollowingtwoyears,andthenceasepayingdividendsaltogether.Howmuchisoneshareofthisstockworthtoyoutodayifyourequirea17percentrateofreturn?

A.

$2.38

B.

$2.43

C.

$2.56

D.

$2.60

E.

$2.64

68.

AtlasHomeSupplyhaspaidaconstantannualdividendof$2.40ashareforthepast15years.Yesterday,thefirmannouncedthedividendwillincreasenextyearby10percentandwillstayatthelevelthroughyearthree,afterwhichtimethedividendswillincreaseby2percentannually.Therequiredreturnonthisstockis12percent.Whatisthecurrentvaluepershare?

A.

$25.51

B.

$26.08

C.

$24.57

D.

$26.02

E.

$26.84

69.

AutoTransmissionsisexpectedtopayannualdividendsof$1.90and$2.10overthenexttwoyears,respectively.Afterthat,thecompanyexpectstopayaconstantdividendof$2.30ashare.Whatisthevalueofthisstockatarequiredreturnof15percent?

A.

$13.67

B.

$14.21

C.

$14.83

D.

$15.08

E.

$15.60

70.

GeneralImportersannouncedtodaythatitsnextannualdividendwillbe$2.60pershare.Afterthatdividendispaid,thecompanyexpectstoencountersomefinancialdifficultiesandisgoingtosuspenddividendsfor5years.Followingthesuspensionperiod,thecompanyexpectstopayaconstantannualdividendof$1.30pershare.Whatisthecurrentvalueofthisstockiftherequiredreturnis18percent?

A.

$3.01

B.

$3.55

C.

$3.89

D.

$4.27

E.

$4.88

71.

BusinessServices,Inc.isexpectedtopayitsfirstannualdividendof$0.80persharethreeyearsfromnow.Startinginyearsix,thecompanyisexpectedtostartincreasingthedividendby2percentperyear.Whatisthevalueofthisstocktodayatarequiredreturnof12percent?

A.

$6.16

B.

$6.47

C.

$6.63

D.

$7.22

E.

$7.47

72.

NewGadgetsisgrowingataveryfastpace.Asaresult,thecompanyexpectstopayannualdividendsof$0.55,0.80,and$1.10pershareoverthenextthreeyears,respectively.Afterthat,thedividendisprojectedtoincreaseby5percentannually.Thelastannualdividendthefirmpaidwas$0.40ashare.Whatisthecurrentvalueofthisstockiftherequiredreturnis16percent?

A.

$8.50

B.

$9.67

C.

$10.46

D.

$12.23

E.

$12.49

73.

TheMarketPlacerecentlyannouncedthatitwillpayitsfirstannualdividendtwoyearsfromtoday.Thefirstdividendwillbe$0.50asharewiththatamountdoublingeachyearforthefollowingtwoyears.Afterthat,thedividendisexpectedtoincreaseby4percentannually.Whatisthevalueofthisstocktodayiftherequiredreturnis15percent?

A.

$11.68

B.

$12.47

C.

$12.99

D.

$14.02

E.

$14.94

74.

Afirmexpectstoincreaseitsannualdividendby20percentperyearforthenexttwoyearsandby15percentperyearforthefollowingtwoyears.Afterthat,thecompanyplanstopayaconstantannualdividendof$3ashare.Thelastdividendpaidwas$1.00ashare.Whatisthecurrentvalueofthisstockiftherequiredrateofreturnis12percent?

A.

$17.71

B.

$18.97

C.

$20.50

D.

$21.08

E.

$21.69

75.

TheBorderCrossingjustpaidanannualdividendof$4.20pershareandisexpectedtopayannualdividendsof$4.40and$4.50persharethenexttwoyears,respectively.Afterthat,thefirmexpectstomaintainaconstantdividendgrowthrateof2percentperyear.Whatisthevalueofthisstocktodayiftherequiredreturnis14percent?

A.

$30.04

B.

$32.18

C.

$33.33

D.

$35.80

E.

$36.75

76.

Astockhasamarketpriceof$46.10andpaysa$2.40annualdividend.Whatisthedividendyield?

A.

4.13percent

B.

4.84percent

C.

5.21percent

D.

5.52percent

E.

5.78percent

77.

TherequiredreturnonMountainMeadowstockis14percentandthedividendgrowthrateis3.5percent.Thestockiscurrentlysellingfor$11.80ashare.Whatisthedividendyield?

A.

7.50percent

B.

8.00percent

C.

9.75percent

D.

10.50percent

E.

12.50percent

78.

Forthepastsixyears,thepriceofSlateRockstockhasbeenincreasingatarateof8.6percentayear.Currently,thestockispricedat$47ashareandhasarequiredreturnof14percent.Whatisthedividendyield?

A.

1.20percent

B.

2.87percent

C.

3.39percent

D.

4.28percent

E.

5.40percent

79.

Astockhaspaiddividendsof$1.80,$1.85,$2.00,$2.20,and$2.25overthepastfiveyears,respectively.Whatistheaveragecapitalgainsyield?

A.

2.80percent

B.

3.24percent

C.

4.45percent

D.

5.34percent

E.

5.79percent

80.

TheToyBoxpaysanannualdividendof$2.40pershareandsellsfor$46.60asharebasedonamarketrateofreturnof15percent.Whatisthecapitalgainsyield?

A.

7.35percent

B.

7.78percent

C.

9.23percent

D.

9.85percent

E.

10.11percent

81.

Investorsreceiveatotalreturnof13.7percentonthecommonstockofDexterInternational.Thestockissellingfor$41.68ashare.Whatisthedividendgrowthrateifthecompanyplanstopayanannualdividendof$2.10asharenextyear?

A.

7.42percent

B.

8.66percent

C.

10.75percent

D.

11.60percent

E.

13.70percent

82.

WesternBeefstockisvaluedat$62.10ashare.Thecompanypaysaconstantannualdividendof$4.40pershare.Whatisthetotalreturnonthisstock?

A.

6.62percent

B.

6.81percent

C.

7.09percent

D.

7.49percent

E.

7.82percent

83.

Lastyear,whenthestockofAlphaMineralswassellingfor$55asharethedividendyieldwas3.2percent.Today,thestockissellingfor$41ashare.Whatisthetotalreturnonthisstockifthecompanymaintainsaconstantdividendgrowthrateof2.5percent?

A.

6.13percent

B.

6.58percent

C.

6.90percent

D.

7.47percent

E.

7.40percent

84.

TherearefouropenpositionsontheboardofdirectorsofDoubleTreeRestaurants.Thecompanyhas180,000sharesofstockoutstanding.Eachshareisentitledtoonevote.Howmanysharesofstockmustyouowntoguaranteeyourpersonalelectiontotheboardofdirectorsifthefirmusescumulativevoting?

A.

36,001shares

B.

37,501shares

C.

38,501shares

D.

40,001shares

E.

42,001shares

85.

Afirmhastwoopenpositionsonitsboardofdirectors.Howmanysharesdoyouneedtoowntoguaranteeyourownelectiontotheboardifthefirmhas12,500sharesofstockoutstandingandusescumulativevoting?Eachshareisgrantedonevote.

A.

3,334shares

B.

4,168shares

C.

5,251shares

D.

5,501shares

E.

6,251shares

86.

Miller'sHardwarehas185,000sharesofstockoutstandingwithacurrentmarketvalueof$27ashare.Youown38,000ofthoseshares.Nextmonth,theelectionwillbeheldtoselectfournewmemberstotheboardofdirectors.Thefirmusesacumulativevotingsystem.Howmuchadditionalmoneydoyouneedtospendtoguaranteethatyouwillbeelectedtotheboardassumingthateveryoneelsevotesforoneoftheothercandidates?

A.

$0

B.

$28,512

C.

$34,047

D.

$222,777

E.

$311,027

87.

TheChipDipCo.has15,500sharesofstockoutstanding,grantsonevotepershare,andusesstraightvoting.Howmanysharesmustyoucontroltoguaranteethatyouwillbeelectedtothefirm'sboardofdirectorsiftherearethreeopenseats?

A.

5,167shares

B.

5,134shares

C.

3,876shares

D.

7,751shares

E.

7,134shares

88.

Kathrynowns18,700sharesofGlobalImporters.Hershareshaveatotalmarketvalueof$787,270.Intotal,thefirmhas65,000sharesoutstanding.Eachshareisentitledtoonevoteunderthestraightvotingpolicyofthefirm.Thenextelectionisinfourmonthsatwhichtimetwodirectorsareupforelection.HowmuchmoremustKathryninvestinthisfirmtoguaranteethatsheiselectedtotheboard?

A.

$0

B.

$513,361

C.

$581,022

D.

$647,280

E.

$711,010

89.

Apreferredstocksellsfor$48.20ashareandhasamarketreturnof15.65percent.Whatisthedividendamount?

A.

$6.93

B.

$6.80

C.

$7.25

D.

$7.42

E.

$7.54

90.

CentralStaircaseisofferingpreferredstockwhichiscommonlyreferredtoas10-10stock.Thisstockwillpayanannualdividendof$10asharestarting10yearsfromnow.Whatisthisstockworthtoyoutodayifyoudesirea16percentrateofreturn?

A.

$14.48

B.

$16.43

C.

$17.07

D.

$17.84

E.

$18.21

91.

GraphicDesignshas120,000sharesofcumulativepreferredstockoutstanding.Preferredshareholdersaresupposedtobepaid$1.50perquarterpershareindividends.However,thefirmhasencounteredfinancialproblemsandhasnotpaidanydividendsforthepastthreequarters.Howmuchwillthefirmhavetopaypershareofpreferrednextquarterifthefirmalsowishestopayacommonstockdividend?

A.

$3.00

B.

$4.50

C.

$6.00

D.

$7.50