Question 28 (1 point)

The "announcement date" is the date on which the board of directors announces the amount of the dividend.

Question 28 options:

a)

True

b)

False

Question 29 (1 point)

In order to use common stock to accumulate wealth, one must reinvest dividends; if not the accumulation will be limited to the stock's book value.

Question 29 options:

a)

True

b)

False

Question 30 (1 point)

As a shareholder, in case of bankruptcy of the corporation, liability would be limited to what is left after selling the stock and subtracting the debt.

Question 30 options:

a)

True

b)

False

Question 31 (1 point)

The discounted dividends valuation model of common stock defines the value of a share of common stock as the present value of the infinite stream of future dividends.

Question 31 options:

a)

True

b)

False

Question 32 (1 point)

The bond you own was issued by IBM Corporation and used no collateral. This is an example of an unsecured mortgage.

Question 32 options:

a)

True

b)

False