Section1: Multiple choice questions (2 points each) M I. The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 per share next year the annmual divisdead is disributed The firm has established a paterm of increasing its dividends by 3 percent anmually and expectis A. 7.42 percent B. 7.79 percent C. 19.67 percent D. 20.14 percent E. 20.86 percent M 2. Roy's Weld ing Supplies common stock sells for $38 a share and pays an annual dividend that increases by 3 percent annually The market rate of return on this stock is 8.20 percent. What is the amount of the last dividend paid? A. S1.80 B. SI.86 C.$1.92 D. $1.98 E.$2.10 M 3. The secondary market is best defined by which one of the following? A. market in which subordinated shares are issued and resold B. market conducted solely by brokers C. market dominated by dealers D. market where outstanding shares of stock are resold E. market where warrants are offered and sold M 4. An agent who maintains an inventory from which he or she buys and sells securities is called a A. broker B. trader C. capitalist. D. principal. E. dealer M 5. A securities market primarily comprised of dealers who buy and sell for their own inventories is referred to which typ market? A. auction B. private C over-the-counter D. regional E. electronic network