1. Whitling & Sons is preparing to pay its quarterly dividend which will be $0.80 a share this quarter. The stock closed at $39.40 a share today. If you ignore the tax on dividend income, then you should expect the stock to open at a price of ____ per share when it goes ex-dividend tomorrow, if all else remains constant. a. $38.57 b. $38.60 c. $38.67 d. $38.72 e. $39.40

2. Medical Devices just paid its annual regular cash dividend of $1.90 a share, along with a special dividend of $0.60 a share. The company follows a policy of increasing its dividend by 3 percent annually. Which one of the following is the best estimate of the firm's next annual dividend payment? a. $1.87 b. $1.90 c. $1.96 d. $2.50 e. $2.58

3. Presto Cleaners recently liquidated its retail dry cleaning unit. That unit represented 35 percent of the firm's overall market value. Prior to the liquidation, the firm's stock was selling for $28 a share and there were 7,000 shares outstanding. The firm is preparing to distribute the entire liquidation proceeds to shareholders. How much will the liquidation dividend be per share? (Hint: First find market value of firm by multiplying number of shares outstanding by market price per share. Now you can find the value of the liquidation proceeds which is divided evenly among all shares outstanding.) a. $8.00 b. $9.80 c. $10.60 d. $18.20 e. $20.74

4. Atlas Maps has the following equity account balances: common stock of $21,000 with a $1 par value, capital surplus of $67,000, and retained earnings of $216,000. The stock has a market value of $16 a share. Assume the firm does a 2-for-1 stock split. How many shares of stock will be outstanding after the split? (Hint: Before the split, number of shares outstanding = book value of common stock / par value per share.) a. 10,500 shares b. 42,000 shares c. 108,000 shares d. 134,000 shares e. 432,000 shares

5. Jen placed an order with her broker to purchase 200 shares of each of three IPOs that are being released this month. Each IPO has an offer price of $18 a share. The number of shares allocated to Jen, along with the closing stock price at the end of the first day of trading for each stock, are as follows: (Hint: Profit on each stock= (Closing market price IPO offer price) x Shares allocated. Then sum profits from all three stocks.)

Stock Shares Allocated Closing Market Price, Day 1

A 20 $27.80

B 200 $16.60

C 75 $19.20

What is Jen's total profit or loss on these three stocks as of the end of the first day of trading for each stock? a. $320 b. $184 c. $79 d. $6 e. -$64