Ray Inc. company is not expected to pay any dividends for three years while it attempts to restructure its business. They anticipate paying $1.50 in year four and thereafter increase it at a rate of 6% forever. What should we pay for the stock if we demand a 12% rate of return?

		$8.77
		$10.96
		$14.24
		$17.79
		$9.50

Harris company paid a dividend of 1.60 today. It expects dividend payments to increase by 15% every year for the next three years before resuming a normal growth of 6%. What should you pay for this stock if you demand a 14% rate of return?

$21.24

$19.92

$26.65

$24.98

$23.25

Deep River company is expected to pay a dividend of $2.40 next year. Its dividends are expected to grow at a rate of 5%. If the price of the stock is $70, what rate of return are investors demanding?

9.00%
		R = (Di/P0 ) + g = 2.40/70 + .05 = 8.43%
		8.50%
		8.68%
		9.62%

A company has 500 shares. What is the minimum number of shares required for a minority shareholder to elect one board member out of 4 members to be elected?

51

101

41

126

76

If a company misses a dividend payment on a non-cumulative preferred stock, it is obligated to pay the following period with the next dividend payment, before any dividends can be paid to common shareholders.

True or False ?

Shareholders have the right to share assets proportionately during liquidation, after other claimholders have recovered their share.

True or False ?