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Fundamentals of Corporate Finance 10th Edition Ross Test Bank
Fundamentals of Corporate Finance 10th Edition Ross Test Bank
Stock Valuation
1. What is the model called that determines the present value of a stock based
on its next annual dividend, the dividend growth rate, and the applicable
discount rate?
A. zero growth
B. dividend growth
C. capital pricing
D. earnings capitalization
E. discounted dividend
2. Which one of the following is computed by dividing next year's annual dividend
by the current stock price?
A. yield to maturity
B. total yield
C. dividend yield
E. growth rate
A. current yield
B. total return
C. dividend yield
E. coupon rate
4. Which one of the following types of stock is defined by the fact that it receives
no preferential treatment in respect to either dividends or bankruptcy
proceedings?
A. dual class
B. cumulative
C. non-cumulative
D. preferred
E. common
5. A company has two open seats, Seat A and Seat B, on its board of directors.
There are 6 candidates vying for these 2 positions. There will be a single
election to determine the winner of both open seats. As the owner of 100
shares of stock, you will receive one vote per share for each open seat. You
decide to cast all 200 of your votes for a single candidate. What is this type of
voting called?
A. democratic
B. cumulative
C. straight
D. deferred
E. proxy
6. You want to be on the board of directors of Wisely Foods. Since you are the
only shareholder that will vote for you, you will need to own more than half of
the outstanding shares of stock if you are to be elected to the board. What is
the type of voting called that requires this level of stock ownership to be
successfully elected under these conditions?
A. democratic
B. cumulative
C. straight
D. deferred
E. proxy
7. You cannot attend the shareholder's meeting for Alpha United so you
authorize another shareholder to vote on your behalf. What is the granting of
this authority called?
A. altering
B. cumulative voting
C. straight voting
D. indenture agreement
E. voting by proxy
8. What are the distributions to shareholders by a corporation called?
A. retained earnings
B. net income
C. dividends
D. capital payments
E. diluted profits
9. Which one of the following is a type of equity security that has a fixed dividend
and a priority status over other equity securities?
A. senior bond
B. debenture
C. warrant
D. common stock
E. preferred stock
10. Callander Enterprises stock is listed on NASDAQ. The firm is planning to issue
some new equity shares for sale to the general public. This sale will occur in
which one of the following markets?
A. private
B. auction
C. exchange floor
D. secondary
E. primary
11. The secondary market is best defined by which one of the following?
Title: Blank?
Language: English
By RANDALL GARRETT
Illustrated by ENGLE
Half an hour later, Kamiroff was rubbing his chin with a forefinger,
deep in concentration. "It sounds wild," he said at last, "but I've
heard of wild things before."
"But what caused it?"
"Do you remember what you did last night? I mean the night of the
first?"
"Not clearly; we got pretty crocked, I remember."
Kamiroff grinned. "I think you were a few up on me. Do you
remember that bottle of white powder I had in the lab down in the
basement?"
"No," Bethelman admitted.
"It was diazotimoline, one of the drugs we've been using in cancer
research on white mice. That whole family of compounds has some
pretty peculiar properties. This one happens to smell like vanilla;
when I let you smell it, you stuck your finger in it and licked off some
of the powder before I could stop you.
"It didn't bother me much; we've given it to mice without any ill
effects, so I didn't give you an emetic or anything."
The bromo had made Bethelman's head feel better. "But what
happened, exactly?" he asked.
"As far as I can judge," the biochemist said, "the diazotimoline has
an effect on the mind. Not by itself, maybe; perhaps it needed the
synergetic combination with alcohol. I don't know.
"Have you heard the theories that Dunne propounded on the mind?"
"Yeah," Bethelman said. "We discussed them last night, I think."
"Right. The idea is that the mind is independent of time, but just
follows the body along through the time stream.
"Evidently, what the diazotimoline did was project your mind two
weeks into the future—to the fifteenth. After two weeks—on the
twenty-ninth—it wore off, and your mind returned to the second. Now
you'll relive those two weeks."
"That sounds like a weird explanation," Bethelman said.
"Well, look at it this way. Let's just say you remember those two
weeks in the wrong order. The drug mixed your memory up. You
remember the fortnight of the second to the fifteenth after you
remember the fortnight of the fifteenth to the twenty-ninth. See?"
"Good gosh, yes! Now I see how I made all that money! I read all the
papers; I know what the stocks are going to do; I know what horses
are going to win! Wow!"
"That's right," Kamiroff agreed. "And you'll know where to leave all
those notes to yourself."
"Yeah! And on the afternoon of the fifteenth, I'll blank out and wake
up in my bed on the morning of the thirtieth!"
"I should think so, yes," Kamiroff said.
"It makes sense, now." Then Bethelman looked up at the biochemist.
"By the way, Dr. Kamiroff, I want to split this money with you; after
all, you're responsible for what happened."
The scientist smiled and shook his head. "No need of that. I have the
diazotimoline, remember? You said you couldn't get hold of me on
the phone; you said I was doing experimental work and couldn't be
disturbed.
"Now, just what do you think I'm going to be experimenting on for the
next couple of months?"
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