toci a, a price of $16 ashare. He usiized his 50% margn acoount to make purchase What is Michaels iniial equity in this invesement? B. 316,000 O c. $8,000 D. _$16,000 for next year are s 7. expected eamn-per Company XYZ pays out 25% of its earnings as dividends. The $1.32, book value ield? vaue per share is 516.80, and the market price per share is $22.44. What is the company's expected A, 08, 7.9% 1.5% D. 5.9% 8. Stocks purchased in the secondary market are purchased A. directly from the issuing corporation. B. indirectly through financial institutions. c. from small- little-known brokerages. D. from other investors 9. When a corporation declares a stock split, it usually does so because A. the firm's retained earnings are excessive O B. there are to many shares of stock outstanding. c. investors sometimes require nontaxable returns. OD the stock pnce is too high. 10. A rights offering is the A. offering of new securities to current shareholders on a pro-rata basis B. sale of securities directly to a select group of investors. C, initial offering of securities to the public. 0 D. sale of newly issued shares of stock to the general public. Which one of the following statements about margin trading is correct? 0 A. Margin traders are pessimistic about the future price of the stock. O B. Margin traders are willing to accept lower return to reduce their risk. 0 C. If Fred buys $1,000 worth of stock using 60% margin, he will need to pay S600 in cash to 0 D. The Securities Exchange Commission sets the minimum margin requirement for margin trading