Question 1 5 pts What is the name of the periodic cash flows payed to stock owners? Coupons Interest Capital Gains Dividends Residual claims Question 2 5 pts Which of the following is NOT a characteristic of common stock? Stock represents partial ownership in a company. tock represents a residual claim on the firm's assets. For tax purposes, dividends paid to stockholders are NOT income tax deductible. Dividends are not legally required to be paid to the stockholders. Stock cash flows are temporary, and expire just like bonds. Question 3 5 pts What can usually happen if a company fails to pay stock owners an expected dividend? The stock price tends to drop. The company can face bankruptcy. The CEO will get fired. ooo The board of directors will be replaced. Stock holders will pay more taxes. Question 4 5 pts A perpetuity is when... Dividends are constant forever Dividends grow at a constant rate forever Dividends grow for a finite amount of time at one growth rate and then at a constant rate forever Coupons are paid at regular intervals Coupons are constant forever