QUESTION 1

Probably the most basic right of a stockholder is the right to:

	A.	receive an assured dividend each year.
	B.	serve as a director of the organization.
	C.	vote at stockholders' meetings.
	D.	receive at least his or her initial investment upon liquidation

4

The three significant cash dividend dates are the date of declaration, date of record, and date of payment.

True

False

QUESTION 3

The price-earnings ratio is computed by dividing the current market price per share of common stock by earnings per share.

True

False

5

The three significant cash dividend dates are (in order) the dates of:

	A.	declaration, distribution, and payment.
	B.	record, distribution, and payment.
	C.	declaration, record, and distribution.
	D.	declaration, record, and payment

6

The date of record follows the date of the declaration of a dividend.

True

False

7

The amount of prior unpaid dividends is only important if the preferred stock is:

	A.	noncumulative and convertible.
	B.	noncumulative and callable.
	C.	noncumulative.
	D.	cumulative

8

The number of outstanding shares of stock is the:

	A.	number authorized but not yet issued.
	B.	number issued to the original incorporates.
	C.	number issued and currently held by stockholders.
	D.	total number issued.

9

Treasury stock is stock that:

	A.	is apportioned to cover special projects such as the construction of a new building.
	B.	has never been issued.
	C.	has been issued but was reacquired by the corporation.
	D.	must be offered to existing stockholders first in amounts proportional to their shareholdings of the issuer's stock.