1. What is the typical frequency with which cash dividends are paid to investors?

A. Monthly

B. Annually

C. Quarterly

D. Semi- Annually

2. Distinguish among the declaration date, date of record, and ex-dividend date.

A.The declaration date is the day the board of directors declares the dividend, the date of record is eight days prior to the payment date, and the ex-dividend date is two working days prior to the date of record.

B.The declaration date is the day the board of directors declares the dividend, the date of record is the day when the stock transfer books are closed, and the ex-dividend date is the same as the date of record.

C.The declaration date is the day the board of directors declares the dividend, the date of record is the day when the stock transfer books are closed, and the ex-dividend date is two working days prior to the date of record.

D.None of the above.

3. Which of the following is an advantage associated with the use of current versus long-term liabilities? A. The firm's interest costs can vary from year to year. B. The interest cost of current liabilities is generally higher than long-term debt. C. The use of current liabilities subjects the firm to greater risk of illiquidity. D. All of the above. E. None of the above.

4. Interest rate risk is of concern to a firm's financial officer, because ____________. A. it is more difficult to issue securities when interest rates are low. B. changes in interest rates affect the expected return of financial instruments. C. federal government taxation increases as interest rates rise, reducing the cash available to the firm. D. inflationary periods may reduce the real earnings of the firm. E. B and D