21. |
The price a dealer is willing to pay for a security held by an investor is called the: |
A) |
Equilibrium price. |
B) |
Ask price. |
C) |
Bid price. |
D) |
Bid-ask spread. |
E) |
Auction price. |
22. |
Suppose you own 500 shares of Biogen common stock. Four directors are to be elected. Since the firm uses cumulative voting, you can cast as many as ___________ votes for a single director. |
A) |
125 |
B) |
250 |
C) |
500 |
D) |
1,000 |
E) |
2,000 |
23. |
What would you pay today for a stock that is expected to make a $2 dividend next year if the expected dividend growth rate is 5% and you require a 12% return on your investment? |
A) |
$28.57 |
B) |
$29.33 |
C) |
$31.43 |
D) |
$43.14 |
E) |
$54.30 |
24. |
Suppose MOTA Inc. has just issued a dividend of $3.25 per share. Subsequent dividends will remain at $3.25 indefinitely. Assuming a 10% required rate, what is the value of one share? |
A) |
$22.50 |
B) |
$27.25 |
C) |
$32.50 |
D) |
$37.25 |
E) |
$39.75 |
25. IEM announced that it will pay a $0.50 dividend per share to holders of record as of Tuesday, May12, 2020. Holding all else constant, the stock price will be lower by $0.50 per share at the opening of trading on
A) May 8, 2020
B) May 9, 2020.
C) May 10, 2020.
D) May 11, 2020
E) May 12, 2020
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Answer:
21
The price a dealer is willing to pay for a security held by an investor is called the Bid price
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