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19. The total rate of return earned on a stock is comprised of which two of the following? I. current yield II. yield to maturity
19. The total rate of return earned on a stock is comprised of which two of the following? I. current yield II. yield to maturity III. dividend yield IV. capital gains yield a. I and II only b. I and IV only c. II and III only d. II and IV only e. III and IV only 20. Shareholders generally have the right to: I. elect the corporate directors. II. select the senior management of the firm. III. elect the chief executive officer (CEO). IV. elect the chief operating officer (COO). a. I only b. I and III only II only d. I and II only e. III and IV only 21. Which of the following statements is most correct? a. One of the advantages to the firm associated with financing using bonds rather than common stock is that the control of the firm is not diluted. b. Bonds provides steadier and more reliable (i.e. safer) income to investors than common stock. c. One of the advantages to the firm of financing with bonds is that bondholders can participate in the firm's growth. d. Statement a and c are correct. e. Statement a and b are correct. 22. Shares of common stock of the Samson Co. offer an expected total return of 12 percent. The dividend is increasing at a constant 8 percent per year. The dividend yield must be: a. 4 percent. b. 4 percent. c. 8 percent. d. 12 percent. e. 20 percent
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