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I need help 1. Which of the following statements is true about common stock? a. Common stock is considered to have a fixed naturity b.

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1. Which of the following statements is true about common stock? a. Common stock is considered to have a fixed naturity b. Owners of common stock are guaranteed dividend payment by the firm c. Owners of common stock have the lowest-priority claim on the firm's assets in the event of bankruptcy d. Common-stock holders have unlimited liability toward the obligations of the corporation. Answer : 2. Newel1 Corp. sells household cleaners producing a revenue stream that has remained unchanged in the last few years. The firm does not expect any change in its sales or earnings in the next several years. The stock is currently selling at 46.88. If the required rate of return is 6.25 percent, what is the dividend paid by this company? a. $2.93 b. $4.65 c. $6.89 d. $7.50 Answer : 3. Two Towers Communications Inc. pays annual dividends of $8.50 with no possibility of it changing in the next several years. If the firm's stock is currently selling at $65.38, what is the required rate of return? (Round to nearest whole number.) a. 148 b. 16 c. 13% d. 158 Answer : 4. Smaug Corp. will pay a dividend of s4.75 next year. The company expects its growth rate to be a constant rate of 7 percent. If the required rate of return is 14 percent, what is the current market price of the stock? a. $69.41 b. $93.63 c. $59. 38 d. $67.86

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