a. You are entitled to a prorated share of IBMs dividend payments and to vote in any

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a. You are entitled to a prorated share of IBM’s dividend payments and to vote in any of IBM’s stockholder meetings.

b. Your potential gain is unlimited because IBM’s stock price has no upper bound.

c. Your outlay was $95 100 $9,500. Because of limited liability, this is the most you can lose. LO.1

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