This is Business Principle class!!

1- Gamers, Inc., needs several million dollars to expand and follow its strategic plan. In negotiations with the investment banker, the company agree to issue

50 million shares of common stock, at $25/share. If the investment banker's fee for underwriting the total sale is 5.82 percent, what is the discounted

price that the investment bank is willing to pay Gamers, Inc. for the shares?

A- around $120,000,000

B- around $1,200,000,000

C- around $140,000,000

D- around $14.000

2- Maya owns stock in Echo Technologies. Her stock provides a priority claim on dividend payments and on the firm's assets in the event of liquidation.

However, her ________ stock ownership does not offer her voting rights.?

A- common

B- preferred

C- superior

D- callable

3- Namrata owns 20 percentof the common stock of the Columbia Coffee Company. The company announced plans to offer an additional 10,000 shares c

common stock for sale. If Namrata exercises her preemptive rights, Columbia Coffee must offer her the opportunity to purchase?

A- 8,000 shares.

B- 2,000 shares.

C- as many of the new shares as the investor is willing and able to buy.

D- 20 percent of the outstanding preferred stock.

4- Kaden purchased 2,000 shares of common stock in Billings Corporation last year. He learned several months later that the stock does not pay a dividend. Kaden should proceed to?

A- hire an attorney and file a lawsuit.

B- hire an attorney and go after the registered representative that brokered the trade.

C- do the proper research before he invests.

D- immediately proceed to sell the shares.

5- After buying 200 shares of common stock in Echo Electronics for $20 per share, Shafeek later sold the same shares for $25 per share. Shafeek's capital

gain on the total transaction is?

A- $10.

B- $110.

C- $1,000.

D- $1,500.

6- A share of preferred stock for Leland Manufacturing currently sells for $120. It offers the investor a dividend rate of 8 percent, on a par value of $10

the investor owns 500 shares, her total annual dividend will equal?

A- $800

B- $8.00

C- $2.000

D- $4,000

7- Reagan recently invested in a 15-year bond with Rocky Mountain Brewers. The bond pays 8 percent interest annually and has a maturity date of 2035.

The bonds are callable in 2030. If interest rates go down to 5.5 percent in the year 2030, the brewery is likely to?

A- not exercise the call.

B- exercise the call.

C- give bondholders a choice of whether they want to turn the bonds back to the brewery.

D- decrease the interest rate that they are willing to pay the holder.

8- Simon wants to supplement his current investments with a high-risk, low-priced security. Which of these best fits his strategy of high risk, low price, and a

potentially high rate of return?

A- time deposits

B- penny stocks

C- blue-chip stocks

D- split stocks