1) The __________ value of a bond is also called its face value. Bonds which sell at greater than face value are priced at a ______________, while bonds which sell at less than face value sell at a ____________.

2) Another term sometimes applied to common stockholder is a

a. residual owner of the firm.

b. reciprocal owner of the firm.

c. net owner of the firm.

d. fundamental or basic owner of the firm.

3) Treasury stock results from the

a. authorization of additional shares of stock by the board of directors.

b. firm selling stock for greater than its par value.

c. cumulative feature on preferred stock.

d. repurchase of outstanding stock.

Flick Living, Inc. has an outstanding issue of preferred stock with a par value of $500 and an annual dividend of 4.5%.

4) What is the annual dollar dividend?

a. $45.00

b. $22.50

c. $450.00

d. $225.00

5) If the preferred stock is noncumulative and the board of directors has not paid the previous year