Question: Question 2 (5 points) Answer True or False, and Explain your answers, even if you answered True. In theory, because of its high dividend yield,

Question 2 (5 points)

Answer True or False, and Explain your answers, even if you answered True.

In theory, because of its high dividend yield, preferred stock is a good investment for the individual investor?

Question 3 (5 points

If the stock market is semi-strong form efficient, a stock will generally not move after an earnings surprise?

Question 4 (5 points)

One of the culprits of the 2007 (2007-2009) Financial Crisis was Standard and Poor's?

Question 5 (5 points)

If the yield-to-maturity on a corporation's debt is 5%, its tax rate is 20% and its P/E ratio is 20, Earnings Per Share will rise if it issues debt to buy back common stock?

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