Preferred stock that requires the payment of dividends in arrears is:

Select one:

a. Noncumulative and convertible preferred stock.

b. Noncumulative preferred stock.

c. Cumulative preferred stock.

d. Noncumulative and callable preferred stock.

Jack Co. issued 675,000 shares at $0.25 per share of common stock. If 75,000 shares were subsequently reacquired, _____ shares are considered outstanding.

Select one:

a. 675,000

b. 75,000

c. 600,000

d. 750,000

On January 1, a shareholder purchased 20 shares of stock in ABC company for $14 per share. On June 30, the company paid a $1.50 dividend per share. On December 31, the shareholder sold all the shares for $16 per share. What is the overall Economic Rate of Return for this investment?

Select one:

a. 21.87%

b. 25.00%

c. 10.71%

d. 17.85%