1. The board of directors of DDT Inc. has declared a dividend of $0.75 per share payable on Monday, January 28 to shareholders of record as of Monday, January 14. Under TSX rules, if you bought 500 shares of DDT stock on Friday, January 11 for $7.50 per share, how much will you receive in dividends? A. $0.00 B. $1.50 C. $37.50 D. $55.00 E. $375.00

2.

Lucky Mike's, Inc. has a target debt/equity ratio of 0.75. After-tax earnings for 2009 were

$850,000 and the firm needs $1,150,000 for new investments. If the company follows a

residual dividend policy, what dividend will be paid?

A. 0

B. 67,240

C. $192,857

D. $213,164

E. $337,500

3.

Mark bought 100 shares of XYZ stock on January 5 at $12.05 per share. XYZ declared a

$0.30 per share dividend on February 24 with a record date of Friday, March 24 and a

payment date of April 15. Mark sold his 100 shares on March 22 at a price of $13.22 a share.

How much did Mark make on this investment?

A. $87

B. $117

C. $127

D. $147

E. $177

4. Randall's, Inc. has 20,000 shares of stock outstanding with a par value of $1.00 per share.

The market value is $12 per share. The balance sheet shows $42,000 in the capital in excess

of par account, $20,000 in the common stock account and $50,500 in the retained earnings

account. The firm just announced a 5 percent (small) stock dividend. What is the change in

the balance in the capital in excess of par account after the dividend?

A. -$12,000

B. $0

C. $10,000

D. $11,000

E. $13,000