Fin 301

QUESTION 1

1.      A firm's common stockholders have the __________ priority of claims against the firm's income.

0.5 points   

QUESTION 2

1.      Dividends paid to preferred stock are/are not a tax-deductible expense and dividends paid to common stock are/are not a tax-deductible expense.

0.5 points   

QUESTION 3

1.      A firm's common stockholders are also known as the _________ owners of the firm.

0.5 points   

QUESTION 4

1.      Common stockholders vote for the firm's board of directors

0.5 points   

QUESTION 5

1.      Common stock is a fixed-cost source of financing to the firm.

0.5 points   

QUESTION 6

1.      Preferred stock is a fixed-cost source of financing to the firm.

0.5 points   

QUESTION 7

1.      A firm's common stockholders have the __________ priority of claims against the firm's assets.

0.5 points   

QUESTION 8

1.      Suppose that XYZ Corporation has previously issued corporate bonds, preferred stock and common stock. An individual investor's required (expected) rate of return would be greatest for the firm's

0.5 points   

QUESTION 9

1.      If a firm's EPS (earnings per share) equals $2.00 then their DPS (dividends per share) must also be $2.00

0.5 points   

QUESTION 10

1.      A corporation's net worth is calculated as ____. TA=total assets, L=liabilities, E=equity