4) On May 23, 2018, the board of directors of Hasbro, Inc. announced that it would pay a dividend of $0.20 a share on August 15, 2018, to shareholders of record as of August 1, 2018. In order to receive this dividend, an investor would have to purchase the stock on or before

a. May 23, 2018

b. August 1, 2018

c. August 15, 2018

d. the cum-dividend date

9) Stable Corporation currently pays a dividend of $0.50 a share. The firm's dividends are expected to grow at a constant rate of 10% indefinitely. If investors require a 15% return on Stable's stock, at what price should it sell?

a. $5.00

b. $10.00

c. $11.00

d. $11.50

13) In which of the following situations might a stock repurchase result in increased firm value?

a. when a firm does an open market, rather than an auction-based, repurchase

b. Stock repurchases never increase or decrease the value of the firm

c. when a firm executes a targeted repurchase in order to buy back shares from specific shareholders at above-market prices

d. when a firm without any positive NPV projects executes a repurchase to distribute excess cash flow to the shareholders

15) All of the following are used to determine the intrinsic value of a stock, EXCEPT:

a.forecast of future cash flows for the stock

b. calculation of present value of these cash flows

c. Market price

d. forecast of the stock price

16) You would like to establish a fund that will be used to offer a scholarship each year to a worthy student at your alma mater. You would like the total annual award to be $5,000, with the first award to be presented today. Your alma mater is able to invest the funds at a constant, annual, tax-free rate of 8%. How much must you donate today to fund this award? Round your answer to the nearest dollar.

a. $62,500

b. $46,296

c. $67,500

d. $51,296

20) A firm has 500 stockholders, each of whom own $100 in shares. If the firm uses $10,000 to repurchase shares, how many stockholders would remain, and what would be the value of their shares?

a. 400 shareholders would each own shares worth $80

b. 500 shareholders would each own shares worth $80

c. 400 shareholders would each own shares worth $100

d. 400 shareholders would each own shares worth $120