Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with question 1-15 please :) D Question 1 1 pts Which of the following statements is incorrect? If preferred stock dividends are

I need help with question 1-15 please :) image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
D Question 1 1 pts Which of the following statements is incorrect? If preferred stock dividends are not paid, the lack of payment is not legally viewed as a default. O NASDAQ is an OTC market because it does not have a physical location where trading takes place. Common stock represents the interest payments and principal claim in a corporation Most of the answers are correct except one. Owners of common stock are not guaranteed any dividend payments and have the lowest priority claim on the firm's assets in the event of bankruptcy. D Question 2 1 pts Owens-Illinois Inc has a common stock that just paid a dividend of $4 per share. If the required return is 0.29 and the growth rate of firm is 0.02, find the common stock price today. (Round to the nearest dollar) $15.1 e $22.4 $274 SA Question 3 1 pts CME Group Inc has a preferred stock paying a dividend of $8 and has a return of 0.13. Calculate the preferred stock price. (Round to the nearest dollar.) $29 $45 O $79 $9 $62 Question 4 1 pts Which of the following statements is correct? All the answers are correct. Common stock is considered to have fixed maturity For a company that has no growth. dividends stay constant over time, I preferred stock dividends are not paid, the lack of payment is legally viewed as a default The constant-growth stock has constant amount of dividends and does not grow over time. Question 5 1 pts Newfield Exploration Co has a common stock that just paid a dividend of $15 per share. If the required return is 0.21 and the growth rate of firm is 0.03, find the common stock price today. (Round to the nearest dollar.) O $60.6 None of the answers is correct. $26.1 $10.0 $85.8 Question 6 1 pts Air Products & Chemicals Inc has a common stock that will pay a dividend of $7 per share next year. If the required return is 0.11 and the growth rate of form is 0.02, find the common stock price today. (Round to the nearest dollar.) $50,0 $35.0 $77.8 $134.7 $67.0 Question 7 1 pts Which of the following statements is correct? Common stockholders take precedence over preferred stockholders in the payment of dividends and in the distribution of corporate assets in the event of liquidation O The payments of preferred stock dividends are contractual obligations The bond valuation model cannot be used to value perpetual preferred stock, O All the answers are correct. The constant-growth dividend model assumes that dividends will stay at the same amount forever. Question 8 1 pts Hershey Foods Corp has a common stock that will pay a dividend of $11 per share in one year. If the required return is 0.21 and the growth rate of firm is 0.04, find the common stock price today. (Round to the nearest dollar.) O $65 $54 O $50 $39 O $89 Question 9 1 pts Monster Beverage Corp has a common stock that will pay a dividend of $5 per share next year. If the required return is 0.22 and the growth rate of firm is 0.03, find the common stock price today. (Round to the nearest dollar) O $15.3 5263 O $56.0 $38.3 O $17.7 Question 10 1 pts T Rowe Price Group Inc has a common stock that will pay a dividend of $12 per share in one year. If the required return is 0.27 and the growth rate of firm is 0.01, find the common stock price today. (Round to the nearest dollar 58 O $69 $57 $79 $47 Question 11 1 pts The preferred stock of Rail Lines, Inc., pays an annual dividend of $12.25 and sells for $59.70 a share. What is the rate of return on this security? 20.52 percent 15,38 percent 17.63 percent 29.84 percent 23.72 percent Question 12 1 pts Which one of the following statements is NOT true about common stock? Common-stock holders have the right to vote on the selection of the board of directors for the firm. None of the statements is true. Common stock holders have limited liability Owners of common stock are guaranteed dividend payments by the form Common stock is considered to have no fixed maturity D Question 13 1 pts Jefferson Mills just paid a dividend of $1.56 per share on its stock. The dividends are expected to grow at a constant rate of 8 percent per year, indefinitely. What will the price of this stock be in 7 years if investors require a 15 percent rate of return? $41.25 $45.33 $32.04 $28.18 $37.46 Question 14 1 pts You cannot attend the shareholder's meeting for Alpha United so you authorize another shareholder to vote on your behalf. What is the granting of this authority called? Indenture agreement voting by proxy altering straight voting cumulative voting Question 15 1 pts Which one of the following is computed by dividing next year's annual dividend by the current stock price? yield to maturity capital gains yield growth rate total yield dividend yield

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Focus On Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart

6th Edition

125991965X, 978-1259919657

More Books

Students also viewed these Finance questions

Question

Explain internal recruitment methods.

Answered: 1 week ago

Question

Summarize job analysis for team members.

Answered: 1 week ago

Question

Describe the recruitment process.

Answered: 1 week ago