1. Seaside Developments Inc. has $200,000 of no par value 4% cumulative preferred shares, and 12,000 shares of no par value common shares outstanding. In its first three years of operation, the company paid cash dividends as follows: Year 1: $8,000; Year 2: $18,000; and Year 3: $24,000. The amount of dividends received by the preferred shareholders in year 2 was

a) $12,000

b) $8,000

c) $18,000

d) $9,000

2. In order to understand a companys business, an analyst must understand the corporations strategy. Which of the following is an example of a corporate strategy?

a) being a high-cost producer

b) being a low-volume producer

c) being a low-cost producer

d) following product simplification

3. When analyzing companies that have diverse business activities, analysts should not rely on segmented information.

a) True

b) False