30. A(n) ______ bond is issued without record of the purchasers name

a) unfunded

b) bearer

c) income

d) registered

e) straight

31. Dizzy Corp bonds bearing a coupon rate of 15%, pay coupons semi-annually, have two years remaining t0 maturity and are currently priced at 980$ per bond. What is the yield to maturity?

a) 16.21%

b) 16.57%

c)15.99%

d) 15%

e) 16.25%

32. a bond that pays interest annually yields an 8.5% rate of return. The inflation rate fir the same period is 4.6% what is the actual rate of return on this bond?

A ) 3.90%

b) 3.68%

c) 3.86%

d) 3.94%

e) 3.73%

33. How much are you willing to pay today for one share of stock if the company just paid a 1.40$ annual dividend, the dividends increased by 4 % annually, and you require a 12% rate of return ?

a) 16.83

b) 9.10

c) 17.50

d) 18.20

e) 8.75

34. How much are you willing to pay for one share of Delphia stock is the company just paid a 1.34 annual dividend the dividends increase by 2.8% annually, and require a 14% rate of return?

a) 12.99

b)12.30$

c) 13.61$

d) 11.96$

e) 9.84$

35. The ABC co. has paid annual dividends of 0.30$, 0.64$, 1.20$ and 1.45$ over the past 4 years. Dividends in the future are expected to grow at a constant rate of 3.5% which one of the followings formulas should be used to complete the value of the stock today?

a) P0 = D/r

b) P0 = D1/(r-g)n

c)P0=D1/(1+r)1 + D2/(1+r)2+ Dn/(1+r)n + P n/ (1+r)n

d) P0 = D1/(1+r)n +g

e) P0=D1/(r-g)

36. Rosebud Florist pays a constant divided of 1.50 $ a share. The company announced today that it will continue to do this for another 2 years after whicj time it will discontinue paying dividends permanently. What is one share of this stock worth today id the required rte of return is 7.5% ?

a) 2.69 $

b) 2.79

c)2.55

d)2.45

e) 3

37. The james river co pays an annual divided of 1.50$ er share on its common stock. This dividend amount has been constant for the past 1 years and is expected to remain constant. Given this, one share of James River co stock :

A ) is basically worthless as it offers no growth potential

b) is valued as if the divided paid is a perpetuity

c) is valued with an assumed growth rate of 3%

d) has a market value of 15 000$

e) has a market value equal to the present value of 1.50$ paid one year from today

38. The stock valuation model that determines the current stock price as the best dividend divided by (discount rate less the dividend growth rate) is called the

a) earnings capitalization model

b) perpetual growth model

c) dividend growth model

d) capital Asset Pricing model

e ) zero growth model

39. The zilo corp has 1000 shareholders and is preparing to elect 3 new board members. You do not own enough shares to control the elections but are determined to oust the current leadership the most likely result of this situation is a :

a) total loss of power for you since you are a minority shareholder

b) legal battle for control of the firm based on your discontent as a individual shareholder

c) negotiated settlement when you are granted control over one of the 3 open postion

d) Proxy fight for control of the firm

e) Arbitrated settlement whereby you are granted control over one of the 3 open positions

40. A form of equity which receives no preferential treatments in either the payments of dividends or in bankruptcy distributions is called _____ stock

a) deferred

b)cumulative

c) dual class

d) common

e) preferred