22. Assume you are considering purchasing stock in Company A. The company website and various stock analysts anticipate that the price of the stock will grow to $210/share by the end of the first year. In addition, they are projecting that a dividend of $5/share will also be paid at the end of the first year. If you demand a 10% rate of return, what would be a fair price for one share of stock? A. $200.00 B. $193.15 C. $202.25 D. $195.45 23. Short term government securities are often issued as "zero coupon" bonds. This means that: A. B. C. D. In exchange for a US Government guarantee the bond offers no interest The bond is sold at a premium and redeemed at face value with no intervening interest payments. The bond is sold at a discount and redeemed at face value with no intervening interest payments. The bond can be redeemed at any time at the option of the holder and interest is determined by the federal funds rate at the time. 24. When a corporation decides to "go public" it retains an investment banker to walk them through the process. The investment banker, or underwriter, helps the business owner determine the right price to enter the market with as well helping with filing of all necessary documents to comply with federal and state security laws. What is the term given to this introductory offering of securities? A. Introductory Primary Omnibus B. Initial Primary Statement C. Investment Banker Declaration D. Initial Public Offering E. Preliminary Stock Offering. 25. Just prior to the introductory offering of the stock, the business owner will typically sell all the stock to the investment banker. This transaction is said to occur in the primary market. A. True B. False