1. Uber Incs shares now sell for $50. The firm has a P/E ratio of 15. Forty percent of earnings is paid out in dividends. What is the firms dividend yield?

a) 2.22%

b) 2.67%

c) 2.33%

d) 1.33%

2. All of the following are disadvantages of going public (publicly trading your firms stock), except:

a) Enabling the potential improvement in your companys debt to equity ratio

b) Enabling the future possibility of a tender offer from another firm

c) Potential for a bear market in stocks

d) Losing controlling interest