1. If preferred stock is callable, it means that:

a. The stock can be called and cancelled at the option of the corporation

b. It can be purchased through a phone call

c. The stock can be converted into bonds

d. The stock can be converted into common stock

2. Suppose that a company's EPS is $3.50 when the company announces a 2-to-1 stock split. Before the split, the company had 100,000 shares of common stock outstanding the par value of the stock was $1. What is the EPS after the stock split?

a. $3.50

b. $7.00

c. $1.75

d. $2.23