1.In terms of changes in the number of shares outstanding, a 20% stock dividend is equivalent to a ____________ stock split.

Select one:

a. six for five

b. six for four

c. five for three

d. five for four

e. seven for six

2. PQR Inc. has a debt-equity ratio of 1.6 and 1 million shares outstanding. The firms pro-forma Statement of Comprehensive income for the next year indicates that its net income will be $560,000. If the company proposes to invest 60% of its earnings in projects, what is the dividend per share?

Select one:

a. $0.34

b. $0.43

c. $0.56

d. $0.90

e. $1.46

3. STU Mobility Inc. will pay $3 per share in cash dividends one year from now, and a liquidating dividend of $75 per share two years from now. The required return on similar common stocks is 12%. If you own 1,000 shares of the 100,000 total shares outstanding in STU, but you want to have constant dividend payout in the next two years, how much homemade dividends can you get in each year?

Select one:

a. $3,696.23

b. $31,234.06

c. $31,302.33

d. $36,962.26

e. $62,468.11