T1PLE CHOICE. Choose the ene alternative that beet completee the statement on anwowera the squestion. 1) Cafnmon stock holders expect to eam a retum by feceiving A) dividends B) fised periodic drvidenis C) intervat. D) arunual intereat. 2) are fromised a kied periodic dividend that must be paid pror to paying any common. stok dividends. A) Common atockhalders 8) Crediton C) Bonitholdets D) Preferred atockholder 3) a group of other hankers formed by an investment banker to share the finarcial risk associated with underwriting new securitiee. This is called: A) invettment barker B) undenvriting C) undervriting syndicate D) selline group 4) Dividends in arrears( Sistie ) which must be paid to the preferred stockholders before payment of dividends to common stockholders are A) noncumalative. B) cumulative. C) convertible. D) participating. 5) Holders of equity : Is called? A) ownership of the firm. B) have loaned money to the firm. C) receive interest payments. D) receive guaranteed income. 6) Shares of stock currently owned by the firm's shareholders are called A) issued. B) treasury shares. C) authorized. D) outstanding. 7) One major expense associated with issuing new shares of common stock is A) legal fees. B) underpricing. C) urderwriting fees. D) registration fees. 8) All of the following features may be characteristic of preferred stock EXCEPT A) tax-deductible dividends. B) no mafurity date. C) callable. D) convertible. 9). Treasury stock results from the A) firm selling stock for greater than its par value. B) repurchase of outstanding stock. C) authorization of additional shares of stock by the board of directors. D) cumulative feature on preferred stock. 10) Meaning that the true value of the shares is greater than the current market price. This is called A) undervalued C) overvalued B) undervalued and overvalued D) the same