1. Which one of the following types of securities has the lowest priori bankruptcy proceeding? A) Convertible bond B) Senior debt ty ina Common stock D) Preferred stock E) Straight bond 2. Newly issued securities are sold to investors in which one of the following markets? A) Private Placements B) Secondary C) Primary D)None of the above. 3. What is the market called that facilitates the sale of shares between individual investors? A) Private Placements Secondary ) Primary D) None of the above. 4. Breakfast Hut is a preferred stock that pays a constant annual dividend of $1.20 per share. How much are you willing to pay for one share if you require a rate of return of 8 percent? A) Less than 8.00 B) $8.00 to $10.00 C) $10.00 to $12.00 7- $12.00 to $16.00 ) More than $16.00 6. Healthy Foods just paid its annual dividend of $1.62 a share. The firm recently announced that all future dividends will increase by 2.1 percent annually indefinitely. What is one share of this stock worth to you if require a rate of return of 15.7 percent? A) Less than $8.00 B) $8.00 to $9.00 C) $9.00 to $10.00 D) $10.00 to $12.00 E) More than $12.00 2