89. Which of the following statements around preferred stock is false?A) Preferred stock has a higher-priority claim on the firm"s assets than prevalent stock.B) Faientice to pay dividends will certainly bring about default.C) Preferred stock has a lower-priority claim on the firm"s assets than the firm"s creditors in the occasion of default.D) Preferred stock typically pays a fixed dividfinish.Ans: B
88. Which of the following statements is true?A) In order for the consistent growth dividend design to properly value a firm"s widespread stock, R have to be higher than g.B) From a useful perspective, the growth rate in the constant growth dividend model must be greater than the amount of the permanent price of inflation and the permanent actual development price of the economic climate.C) In order for the consistent development dividend version to effectively value a firm"s prevalent stock, g must be better than R.D) The consistent development dividfinish version have the right to be offered efficiently to worth the prevalent shares of a mixed expansion stock.

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86. The continuous expansion dividend model would be advantageous to determine the worth of all yet which of the adhering to firms?A) A firm whose revenue and also dividends are declining at a relatively secure price.B) A firm whose sales, earnings, and dividends are prospering at an annual average compound price of 5 percent.C) A firm whose revenue and dividends are flourishing at a reasonably stable price.D) A firm whose meant sales, profits, and also dividends are flat.
85. Which of the complying with is the most typical example of a zero-expansion dividend stock?A) The common stock of a firm in the biotechnology sector.B) The desired stock of a energy company.C) The stock of a firm in the wellness treatment industry.D) The stock of a firm in the information modern technology sector.
84. Which of the adhering to statements is true around the basic dividend valuation model?A) It implies that the underlying worth of a share of stock is identified by the market"s expectations of the future dividends that the firm will geneprice.B) It implies that the value of a firm"s common stock deserve to be identified just if the expected future dividends are unlimited.C) It implies that the value of a expansion stock can be established by forespreading the future price of the stock.D) The version cannot be supplied to calculate the value of a common stock unmuch less the dividends exceed the firm"s meant growth rate.
82. Which of the following statements is true?A) Preferred stockholders are taken into consideration to be the true owners of public corporations.B) Dividends passist to preferred stockholders are not solved.C) Preferred stockholders do not frequently have actually voting rights.D) Preferred stock deserve to never before be converted to widespread stock.
81. Which of the adhering to is not a widely understand stock industry index?A) The Dow Jones Industrial Mean.B) The OTQ Composite Index.C) The New York Stock Exreadjust Index.D) The Standard and also Poor"s 500 Index.
1. Which ONE of the adhering to statements is true about additional markets?a. In secondary markets, superior shares of stock are bought and also marketed among investors.b. For an investor, the function of secondary markets is to provide profitcapability for the shares of securities they own. c. An active secondary market causes firms to sell their brand-new debt or equity concerns at a greater cost of funds.d. All of the above are true statements
2. Which ONE of the adhering to statements is true about additional industries in the United States?a. In regards to complete volume of activity and total capitalization of the firms listed, the NASDAQ is the largest in the human being and the NYSE is the second biggest. b. In regards to the number of suppliers listed and shares traded on a daily basis, NASDAQ is larger than the NYSE. c. Firms provided on the NASDAQ tfinish to be, on average, larger in size, and their shares trade even more generally than firms whose securities trade on NYSE.d. In the USA, the majority of secondary sector transactions are done over the respond to.
3. Which among the complying with statements is NOT true about additional markets?a. In terms of total volume of activity and also complete capitalization of the firms noted, the NASDAQ is the biggest in the civilization and the NYSE is the second biggest. b. In terms of the number of companies detailed and shares traded on a daily basis, the NASDAQ is larger than the NYSE. c. Firms provided on the NYSE tfinish to be, on average, bigger in dimension and their shares profession even more frequently than firms whose securities trade on NASDAQ.d. In the United States, a lot of additional sector transactions are done on among the many stock exchanges
4. In comparikid to the NYSE, a. NASDAQ has less carriers listed.b. full share volume is lower on the NASDAQ.c. firms listed on the NASDAQ tend to be smaller sized.d. NASDAQ firms exceed NYSE detailed firms in full capitalization.
5. Direct search industries are identified bya. complete price information.b. substantial broker and also dealer participationc. private placement transactions and also sale of common stock of tiny exclusive carriers.d. a high level of effectiveness.
6. The leastern reliable of all the different kinds of additional markets is thea. auction sector.b. straight search sector.c. dealer sector.d. broker sector.
7. Which one of the adhering to statements is NOT true about broker markets?a. Brokers bring buyers and also sellers together to earn a fee, called a commission.b. Brokers" substantial contacts carry out them through a pool of price information that individual investors could not economically duplicate themselves.c. Investors have actually an incentive to hire a broker because they charge a commission that is much less than the expense of straight search.d. Brokers deserve to guarantee an order because they have actually an inventory of securities.

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8. In brokered marketsa. the commission charged by brokers is a lower expense to buyers and also sellers than the expense of direct search.b. buyers and sellers are carried together for a transaction fee.c. brokers develop a pool of price information with their substantial contacts.d. All of the above are true of broker industries.
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