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NASDAQ is best described as:


A) a modern-day trading floor with locations in Chicago and London.
B) an electronic communication network.
C) an electronic network of securities dealers.
D) an internet broker's market.
E) a primary market.

F) A) and C)
G) A) and D)

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Kate could not attend the last shareholders' meeting and thus she granted the authority to vote on her behalf to the managers of the firm.Which term applies to this granting of authority?


A) Straight
B) Cumulative
C) Consent-form
D) Proxy
E) In absentia

F) A) and B)
G) A) and C)

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D

Which type of stock pays a fixed dividend, receives first priority in dividend payment, and maintains the right to a dividend payment, even if that payment is deferred?


A) Noncumulative preferred
B) Cumulative preferred
C) Senior common
D) Cumulative common
E) Noncumulative common

F) A) and B)
G) A) and E)

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Russell Foods pays a fixed annual dividend of $2.28 a share.At a required return of 11.5 percent, the stock is valued at $43.20 a share.What is the dividend growth rate at this price?


A) 5.99 percent
B) 5.28 percent
C) 6.12 percent
D) 5.37 percent
E) 6.22 percent

F) All of the above
G) A) and E)

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E

Dry Dock Marina is expected to pay an annual dividend of $1.58 next year.The stock is selling for $18.53 a share and has a total return of 9.48 percent.What is the dividend growth rate?


A) .82 percent
B) 1.03 percent
C) 1.28 percent
D) .95 percent
E) .66 percent

F) B) and D)
G) B) and E)

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The common stock of Federal Logistics is selling for $57.56 per share.The company pays a constant annual dividend and has a total return of 10.13 percent.What is the amount of the dividend?


A) $3.53
B) $3.55
C) $5.83
D) $6.20
E) $5.31

F) A) and D)
G) C) and D)

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C

Crocodile Swimwear pays a constant annual dividend of $1.88 per share.How much are you willing to pay for one share if you require a rate of return of 11.1 percent?


A) $14.72
B) $16.94
C) $8.47
D) $1.69
E) $13.90

F) B) and C)
G) B) and D)

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Sweet Treats pays a constant annual dividend of $2.38 a share and currently sells for $52.60 a share.What is the rate of return?


A) 4.56 percent
B) 5.39 percent
C) 4.52 percent
D) 4.83 percent
E) 5.91 percent

F) B) and D)
G) A) and D)

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Today's stock market report shows that SW Companies has a PE ratio of 9.8, a dividend yield of 2.2 percent, a closing price $29.86, and a net change of .11.What is the annual dividend amount?


A) $.66
B) $1.08
C) $1.13
D) $1.28
E) $1.33

F) B) and C)
G) C) and D)

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A stock is priced at $38.24 a share and has a market rate of return of 9.65 percent.What is the dividend growth rate if the company plans to pay an annual dividend of $.48 a share next year?


A) 7.42 percent
B) 8.39 percent
C) 2.23 percent
D) 7.60 percent
E) 1.26 percent

F) B) and C)
G) C) and D)

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Vegan Delite stock is valued at $68.60 a share.The company pays a constant annual dividend of $2.40 per share.What is the total return on this stock?


A) 3.62 percent
B) 4.00 percent
C) 3.50 percent
D) 3.39 percent
E) 3.82 percent

F) C) and E)
G) C) and D)

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A firm has four open positions on its board of directors.How many shares do you need to own to guarantee your own election to the board if the firm has 387,500 shares of stock outstanding and uses cumulative voting? Each share is granted one vote.


A) 33,334 shares
B) 77,501 shares
C) 75,251 shares
D) 70,501 shares
E) 96,876 shares

F) A) and D)
G) B) and E)

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Inside quotes are defined as the:


A) bid and asked prices presented by NYSE DMMs.
B) last bid and asked price offered prior to the market close.
C) lowest asked and highest bid offers.
D) daily opening bid and asked quotes.
E) last traded bid and asked prices.

F) C) and D)
G) All of the above

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The next dividend payment by S&S will be $1.38 per share.The dividends are anticipated to maintain a 2.5 percent growth rate, forever.If the stock currently sells for $26.90 per share, what is the required return?


A) 8.03 percent
B) 7.82 percent
C) 7.63 percent
D) 8.74 percent
E) 9.02 percent

F) A) and E)
G) A) and B)

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Newly issued securities are sold to investors in which one of the following markets?


A) Proxy
B) Stated value
C) Inside
D) Secondary
E) Primary

F) None of the above
G) B) and C)

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Industrial Products has both common and noncumulative preferred stock outstanding.The dividends on these stocks are $1.10 per quarter per share of common and $2.25 per quarter per share of preferred.The company has not paid any dividends for the past two quarters but is expected to pay dividends on both the common and the preferred stock next quarter.What is the minimum amount the firm must pay per share to its preferred stockholders next quarter if it plans to pay a common dividend?


A) $0
B) $3.35
C) $2.25
D) $4.50
E) $6.75

F) A) and B)
G) A) and E)

Correct Answer

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Gator Tires pays a constant annual dividend of $1.21 per share.How much are you willing to pay for one share if you require a rate of return of 9.3 percent?


A) $14.72
B) $13.01
C) $6.50
D) $1.39
E) $13.90

F) B) and E)
G) A) and E)

Correct Answer

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There are two open seats on the board of directors.If two separate votes occur to elect the new directors, the firm is using a type of voting that is best described as _____ voting.


A) simultaneous
B) straight
C) proxy
D) cumulative
E) sequential

F) None of the above
G) C) and D)

Correct Answer

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If a trade is made "in the crowd," the trade has occurred:


A) between a broker and a DMM.
B) between two brokers.
C) electronically on NASDAQ.
D) onSuperDOT.
E) on an ECN.

F) A) and B)
G) A) and C)

Correct Answer

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Which one of the following players on the floor of the NYSE is obligated to maintain a two-sided, orderly market for a limited number of securities?


A) Designated market maker
B) Floor sweeper
C) Investment firms
D) Supplemental liquidity provider
E) Floor broker

F) B) and C)
G) C) and E)

Correct Answer

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