1. What are the similarities between stocks and bonds?

Multiple answers: You can select more than one option

A

Secondary markets exist

B

Provides long-term funding for an organization

C

Both are paid off at maturity

2.If the TB Pirates common stock is trading today at $15, should you buy it

A

Yes

B

No

3. You observe a stock price of $18.75. You expect a dividend growth rate of 5%, and the most recent dividend was $1.50. What is the required return?

A

11.23

B

13.4

C

15.2

4. What are some of the major characteristics of common stock?

5. What are some of the major characteristics of preferred stock?

6. Dividends are considered a debt for the corporation.

A

True

B

False