40. If there are 11 open positions on the board of directors of Mars & Asteroids, LLC, you need to control _____ percent plus one of the outstanding shares to guarantee that the candidate of your choice is elected given that the firm uses cumulative voting.

36. Given the following partial stock quote, what was yesterday's closing price for M&N Company?

Div: ? Yld%: 7.5 PE: ? HI: 30.19 LO:26.34 Close:? Net Chg: +1.99

33. The dividend growth rate is referred to as the: a: total return b:discount rate c: capital gain yield d: dividend yield e: market rate

32: Preferred stock: A: pays dividends only when the firm has positive net earnings B: may have an obligatory sinking fund C: pays interest on any deferred dividends D: generally has a liquidating value of 1000 per share E: is never callable

31. Preferred stock: I. generally has a fixed dividend. II. generally has a dividend that increases annually. III. receives preference in bankruptcy over bonds. IV. receives preference in bankruptcy over common stock.

Can be multiple

30. Preferred stock: A: is more valuable if it is noncumulative rather than cumulative. B: is treated as debt for tax purposes. C: does not create a liability for a firm when its dividends are deferred. D: almost always carries voting privileges. E: pays a guaranteed dividend.

29. The Sweet Shoppe is planning on paying a dividend of $1.25 a share next year. The firm expects to increase this dividend by 10 percent per year the following two years and then decrease the dividend growth to 3 percent annually thereafter. Which one of the following is the correct computation of the dividend for year 5? A: $1.25 x {(2 x 1.1) + [2 x (1 - .03)]} B: $1.25 x 1.1² x 1.03³ C: $1.25 x 1.1² x 1.03² D: $1.25 x 1.1² x (1 - .03)² E: $1.25 x [2 x (1.1 x 1.03)]

28. The primary market is defined as the market in which the largest number of issues are listed. T/F

27. Straight voting is defined as the process where the directors of a corporation are elected one at a time. T/F

8. Preferred stock may have an obligatory sinking fund. T/F

9. The valuation model that computes the current value of a stock by dividing next year's dividend by the net of the discount rate minus the dividend growth rate is called the _____ model.

15. Tullius Hostilius, Inc. stock is valued at $48.94 a share. The company pays a constant dividend of $3.76. What is the required return (in percents) on this stock?

18. an agent who arranges transactions among investors. ____ Broker?

19. The smallest firms listed on NASDAQ are in the NASDAQ _____ Market. Capital?