Which of the following securities has the greatest financial risk?

a. preferred stock

b. common stock

c. corporate bonds

d. US Treasuries

You own a common stock that just paid an annual dividend of $6. The firm expects the dividends to grow at a 4% constant rate. If the required rate of return for the stock is 10%, then what is the price that you should be able to sell the stock for now?

a. 60

b. 104

c. 100

d. 150

Which of the following is a strength of a sole proprietorship?

a. unlimited life

b. easy to form

c. limited liability

d. limited access to capital