1. The stock valuation model that determines the current stock price as the next dividend divided by the (discount rate less the dividend growth rate) is called the:

A) Zero growth model.

B) Dividend growth model.

C) Capital Asset Pricing Model.

D) Earnings capitalization model.

2. A stock's next expected dividend divided by the current stock price is the:

A) Current yield.

B) Total yield.

C) Dividend yield.

D) Capital gains yield.

E) Earnings yield.

3. The rate at which the stock price is expected to appreciate (or depreciate) is the:

A) Current yield.

B) Total yield.

C) Dividend yield.

D) Capital gains yield.

E) Earnings yield.

4. Payments made by a corporation to its shareholders, in the form of either cash, stock, or payments in kind, are called:

A) Retained earnings.

B) Net income.

C) Dividends.

D) Redistributions.

E) Infused equity.

5. The market in which new securities are originally sold to investors is the ________ market.

A) dealer

B) auction

C) over-the-counter (OTC)

D) secondary

E) primary