6. The current share price is 50. The divided paid is 10. Calculate the dividend yield?

a. 0.25 b. 5 c. 0.3 d. 0.2

7. Historical stock prices can not be used to predict future stock prices. Which form of market efficiency is this?

a. Weak form b. Semi Strong form c. Strong form d. None of these

8. In the last financial year, the net earnings of a firm are AED 57000. The company distributed AED 17000 as dividends. The expected ROE of the firm 11%. What is the expected rate of growth of the firm?

a. 70% b. 7.7% c. 29.8% d. 22.25%

9. In the capital asset pricing model, if the beta of a stock is greater than 1, the stock is?

a. as risky as the market b. less risky than the market c. more risky than the market d. can't say

10. Who has the right to call the bonds?

a. Issuer b. Bond Trustee c. Bondholder