Cookie Monster anticipates that he will be buying a company called Matilda Milk, Inc. for $22.00 per share, and Matilda Milk, Inc. is only valued at $19.00 per share. Would Cookie Monster be considered to be buying Matilda Milk, Inc. at a discount or a premium?

a. Discount. b. Premium

The common stock of The Garden of Eden is selling for $50 a share. The company pays a constant annual dividend and has a total return of 4.6 percent. What is the amount of the dividend?

a. $4.00 b. $3.20 c. $12.50 d. $2.30