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21.
The counter area on the floor of the NYSE where a specialist operates is
called a:
22.
A securities market primarily comprised of dealers who buy and sell for their
own inventories is referred to which type of market?
23.
An ECN is best described as:
24.
National Trucking has paid an annual dividend of $1.00 per share on its
common stock for the past fifteen years and is expected to continue paying
a dollar a share long into the future. Given this, one share of the firm's stock
is:
25.
An increase in which of the following will increase the current value of a
stock according to the dividend growth model?
I. dividend amount
II. number of future dividends, provided the current number is less than
infinite
III. discount rate
IV. dividend growth rate
26.
High Country Builders currently pays an annual dividend of $1.35 and plans
on increasing that amount by 2.5 percent each year. Valley High Builders
currently pays an annual dividend of $1.20 and plans on increasing its
dividend by 3 percent annually. Given this information, you know for certain
that the stock of High Country Builders' has a higher ______ than the stock
of Valley High Builders.
27.
The dividend growth model:
I. assumes that dividends increase at a constant rate forever.
II. can be used to compute a stock price at any point in time.
III. can be used to value zero-growth stocks.
IV. requires the growth rate to be less than the required return.
28.
Which one of the following is an underlying assumption of the dividend
growth model?
29.
Answer this question based on the dividend growth model. If you expect the
market rate of return to increase across the board on all equity securities,
then you should also expect:
30.
Which one of the following statements is correct concerning the two-stage
dividend growth model?
31.
Which one of the following statements is correct?
32.
Supernormal growth is a growth rate that:
33.
Which one of the following represents the capital gains yield as used in the
dividend growth model?
34.
Winston Co. has a dividend-paying stock with a total return for the year of -
6.5 percent. Which one of the following must be true?
35.
The two-stage dividend growth model evaluates the current price of a stock
based on the assumption a stock will:
36.
Which one of the following sets of dividend payments best meets the
definition of two-stage growth as it applies to the two-stage dividend
growth model?
37.
Which one of the following rights is never directly granted to all
shareholders of a publicly-held corporation?
38.
Jen owns 30 shares of stock in Delta Fashions and wants to win a seat on
the board of directors. The firm has a total of 100 shares of stock
outstanding. Each share receives one vote. Presently, the company is voting
to elect three new directors. Which one of the following statements must be
true given this information?
39.
The Blue Marlin is owned by a group of 5 shareholders who all vote
independently and who all want personal control over the firm. What is the
minimum percentage of the outstanding shares one of these shareholders
must own if he or she is to gain personal control over this firm given that
the firm uses straight voting?
40.
Chemical Mines has 5,000 shareholders and is preparing to elect two new
board members.
You do not own enough shares to personally control the elections but are
determined to oust the current leadership. Likewise, no other single
shareholder owns sufficient shares to personally control the outcome of the
election. Which one of the following is the most likely outcome of this
situation given that some shareholders are happy with the existing
management?
