________ 1. You currently own 6 percent of the 25,000 shares of outstanding stock in Davis Mills. This year, there are 4 open seats on the board of directors and you want to win one of those seats. Assume every share of stock is granted one vote, the firm uses cumulative voting, and no one else votes for you. How many additional shares must you purchase to ensure your election to the board?

a. 3,500 shares b. 3,501 shares c. 11,000 shares d. 11,001 shares

________ 2. A member of the NYSE who trades for his or her personal account is called a:

a. floor broker. b. floor trader. c. specialist d. commission broker

________ 3. A.B. Winston has a company policy of increasing its dividend by 2.5 percent annually. What will the

annual dividend for this firm be 3 years from now if the last dividend paid was $2.80 a share?

a. $3.02 b. $3.11 c. $3.39 d. $3.45