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8. If you buy firms stocks, then you have A) the right for residual cash flows B) the higher priority to claim the cash flows

8. If you buy firms stocks, then you have

A) the right for residual cash flows

B) the higher priority to claim the cash flows of the firms

C) the power

D) the choice

E) None of the above

9. If you buy firms bonds, then you have

A) the voting right

B) the higher priority to claim the cash flows of the firms

C) the power

D) the choice

E) None of the above

10. What is the meaning of the ex-dividend price?

A) There are no dividend payments

B) The stock price at time t doesnt include the dividend paid at time t.

C) The dividends are paid in the last period.

D) The stock price has nothing to do with dividends.

E) None of the above

11. What is the meaning of the ex-coupon price?

A) There are no coupon payments

B) The bond price at time t doesnt include the coupon paid at time t.

C) The coupons are paid in the last period.

D) The bond price has nothing to do with coupon payments.

E) None of the above

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