1. Which of the following statements is true about common stock? A. Common stock is consitered to have a fixed maturity. B. Owners of common stock have the lowest-priority claim on the firm's assets. C. Owners of common stock are guaranteed dividend payments by the firm. D. Common-stock holders have unlimited liability toward the obligations of the corporation. 2. Newell Corp. sells household cleaners producing a revenue stream that has remained unchanged in the last few years. The firm does not expect any change in its sales or earnings in the next several years. The stock is currently selling at $46.88. If the required rate of return is 6.25 percent, what is the dividend paid by this company? A. $4.65 B. $7.50 C. $6.89 D. $2.93 3. Two Towers Communications Inc. pays annual dividends of $8.50 with no possibility of it changing in the next several years. If the firm's stock is currently selling for $65.38, what is the required rate of return? (round to the nearest whole number) A. 15% B. 13% C. 14% D. 16% 4. Smaug Corp. WILL pay a dividend of $4.75 next year. The company expects its growth rate to be a constant rate of 7 percent. If the required rate of return is 14 percent, what is the current market price of the stock? A. $59.38 B. $69.41 C. $67.86 D. $93.63 5. Which of the following statements is NOT true about common stock? A. Common-stock holders have the right to vote on the election of the board of directors of their company. B. Common stock is considered to have no fixed maturity. C. Common-stock holders have limited liability toward the obligations of the corporation. D. Owners of common stock are guaranteed dividend payments by the firm