1) Which one of the following statements is true?

A) Corporate dividends for common stock must be paid in cash only.

B) Stockholders must elect the board of directors.

C) The selling price of stock is determined by how much the corporation is willing to receive.

D) Corporations are required by law to have two stockholder meetings each year.

E) Stockholders may vote only by proxy.

2) When a stock splits two-for-one, you should expect the price per share to:

A) decrease to half its pre-split price. B) decrease in value by 75 percent or more.

3) Which one of the following statements is false? A) Numerical measures can help investors decide if it is time to buy or sell a stock. B) Future earnings may be one of the most significant factors to examine when evaluating a stock. C) Higher earnings generally equate to higher stock prices. D) The price for a share of stock is determined by what another investor is willing to pay for it.

E) Few investors consider earnings per share when evaluating the financial health of a corporation.

3 ) Becky Martinez paid $65 a share for stock in GBX Corporation. The stock has a current market value of $24 a share and pays $0.80 a year in dividends per share. What is the dividend yield rounded to the nearest tenth of a percent? A) 2.5 percent

B) 7.4 percent

C) 3.3 percent

D) 30.0 percent

E) 40.0 percent

C) remain unchanged.

D) increase to more than twice its pre-split price.

E) increase to twice its pre-split price.

4) Fred Manufacturing Company pays an annual dividend of $0.80 per share, has earnings per share of $2.50, and sells for $35 a share. What is this company's dividend payout ratio? A) 8 percent B) 25 percent

C) 28 percent

D) 32 percent

E) 35 percent

5) A market in which an investor purchases financial securities from the issuer of those securities using an investment bank or other representative is called the ________ market.

A) technical B) fundamental

C) efficient

D) secondary

E) primary

6) Which one of the following is a true statement? A) The over-the-counter market is a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange. B) Account executives buy or sell a particular stock to maintain an orderly market. C) OTC trading is for investors who want to buy or sell stocks in stores. D) Specialists are not members of the NYSE. E) Most NYSE members represent brokerage firms that do not charge commissions on security trades.

7)On May 20, 2018, Tony Blackman bought 100 shares of stock from XYZ Corporation. The quarterly dividend is $1.50 per share and the record date is May 25. How much will Tony receive for this quarterly dividend? A) $0.00

B) $1.50

C) $15.00

D) $150.00

E) $0.15

Please give your reasoning for the answer you put