The value of a stock is determined by computing the _____ of all of the _____ the stock is expected to generate in the future.
| a. present value; dividends | | |
| b. future value; dividends | | |
| c. present value; capital gains | | |
| d. future value; market prices | | |
Which of the following best describes American depository receipts (ADRs)?
| a. A provision that gives existing common stockholders the right to purchase new issues of common stock on a pro rata basis before any shares can be offered to other investors | | |
| b. A document giving one person the authority to act for another, it typically gives them the power to vote shares of common stock | | |
| c. A stock, owned by the firm's founders, which has sole voting rights but generally pays out only restricted dividends for a specified number of years | | |
| d. Certificates created by organizations such as banks; they represent ownership in stocks of foreign companies that are held in trust by banks located in the countries where the stocks are traded | |