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41.
Hardy Lumber has a capital structure which includes bonds, preferred
stock, and common stock.
Which of the following rights have most likely been granted to the preferred
shareholders?
I. right to share in company profits prior to other shareholders
II. right to elect the corporate directors
III. right to vote on proposed mergers
IV. right to all residual income after the common dividends have been paid
42.
Boston Free Press has a dividend policy whereby the firm pays a constant
annual dividend of $2.40 per share of common stock. The firm has 1,000
shares of stock outstanding. The company:
43.
Which one of the following statements related to corporate dividends is
correct?
44.
Which one of these statements related to preferred stock is correct?
45.
You own one share of a cumulative preferred stock which pays quarterly
dividends. The firm has recently suffered some financial setbacks and has
failed to pay the last two dividends. However, new funding has been
arranged and the firm intends to restore all dividends, both common and
preferred, this quarter. As a preferred shareholder, you should expect to
receive the equivalent of ____ quarter(s) of dividends when the next
dividend is paid.
46.
Which of the following features do preferred shareholders and bondholders
frequently have in common?
I. lack of voting rights
II. conversion option into common stock
III. annuity payments
IV. fixed liquidation value
47.
Which of the following apply to a specialist who trades on the floor of the
NYSE?
I. provides liquidity for an individual security
II. partially being replaced by SuperDOT
III. pays an annual fee for a trading license
IV. acts as a dealer
48.
Which one of the following statements related to the NYSE is correct?
49.
Which one of the following transactions occurs in the primary market?
50.
Which one of the following statements currently applies to a NYSE broker?
51.
Who owns the NYSE?
52.
Which one of the following players on the floor of the NYSE can be likened
to part-time help because they are called to duty only when others are fully
employed?
53.
Which one of the following statements applies to NASDAQ?
54.
You own 600 shares of a NASDAQ listed stock that you wish to sell. Which
of the following are options available to you for this purpose?
I. sell the shares to a dealer at the dealer's bid price
II. sell directly to another individual via an ECN
III. offer the shares yourself on NASDAQ via an ECN
IV. have a broker offer the shares for sale on the NYSE
55.
You are the sole shareholder of a small corporation. Presently, you wish to
diversify your holdings and thus want to sell a portion of your shares but do
not want to incur the costs associated with SEC filings. Which one of the
following markets, if any, might be conducive to this sale?
56.
You are an accountant and have been analyzing the financial statements of
Euro Place Markets, which is a foreign retailer. While the firm's financials
are not prepared according to GAAP, you have still been able to understand
the firm's accounting practices and feel that this firm has a bright future. On
which one of the following U.S. markets, if any, might you be able to
purchase shares in this firm?
57.
Miller Brothers Hardware paid an annual dividend of $0.95 per share last
month. Today, the company announced that future dividends will be
increasing by 2.6 percent annually. If you require a 13 percent rate of return,
how much are you willing to pay to purchase one share of this stock today?
58.
Sessler Manufacturers made two announcements concerning its common
stock today. First, the company announced that the next annual dividend
will be $1.75 a share. Secondly, all dividends after that will decrease by 1.5
percent annually. What is the maximum amount you should pay to purchase
a share of this stock today if you require a 14 percent rate of return?
59.
How much are you willing to pay for one share of Jumbo Trout stock if the
company just paid a $0.70 annual dividend, the dividends increase by 2.5
percent annually, and you require a 10 percent rate of return?
60.
Free Motion Enterprises paid a $2.20 per share annual dividend last week.
Dividends are expected to increase by 3.75 percent annually. What is one
share of this stock worth to you today if your required rate of return is 15
percent?
61.
Upper Crust Bakers just paid an annual dividend of $3.10 a share and is
expected to increase that amount by 4 percent per year. If you are planning
to buy 1,000 shares of this stock next year, how much should you expect to
pay per share if the market rate of return for this type of security is 12
percent at the time of your purchase?
