10. Which of the following statements is true about common stock? a. Owners of common stock have the lowest-priority claim on the firm's assets in the event of bankruptcy. b. Common-stock holders have unlimited liability toward the obligations of the corporation. c. Common stock is considered to have a fixed maturity. d. Owners of common stock are guaranteed dividend payment by the firm. Answer: 11. Which of the following statements is true? a. As interest rates decline, the prices of bonds rise; and as interest rates rise, the prices of bonds decline. b. All other things being equal, short-term bonds are riskier than long-term bonds. c. Long-term bonds have lower price volatility than short-term bonds. d. Interest rate risk decreases as maturity increases. Answer: 12. The common stock of Giant Eagle Logistics is selling for $57.56 per share. The company pays a constant annual dividend and has a total return of 10.13 percent. What is the amount of the dividend? a. $6.20 b. $5.31 c. $3.53 d. $5.83 e. $3.55