Fin300 ch. 8

the dividend growth model

1.) assumes dividends increase at constant rate forever 2.) can be used to compute a stock price at any given time 3.) can be used to value zero-growth stocks 4.) requires growth rate to be less than the required return

An agent who arranges a transaction between a buyer and a seller of equity securities is called a:

broker

An agent who maintains an inventory from which he or she buys and sells securities is called a:

dealer

Which one of the following rights is never directly granted to all shareholders of a publicly-held corporation?

determining the amount of the dividend to be paid per share

Which one of the following represents the capital gains yield as used in the dividend growth model?

g

A securities market primarily comprised of dealers who buy and sell for their own inventories is referred to which type of market?

over the counter

Which one of the following is a type of equity security that has a fixed dividend and a priority status over other equity securities?

preferred stock

Callander Enterprises stock is listed on NASDAQ. The firm is planning to issue some new equity shares for sale to the general public. This sale will occur in which one of the following markets?

primary

You cannot attend the shareholder's meeting for Alpha United so you authorize another shareholder to vote on your behalf. What is the granting of this authority called?

voting by proxy