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37.Over the past 50 years, which of the following investments has provided the smallest average return?A)Canadian common stocksB)U.S. common stocksC)Treasury billsD)Long bondsE)Canadian small stocksAns: C Level: Basic Subject: Historical Returns Type: Concepts38.Over the past 50 years, which of the following investments has been considered the most risky?Level: Basic Subject: Historical Risk Type: Concepts39.Over the past 50 years, which of the following investments has been the least risky?Level: Basic Subject: Historical Risk Type: Concepts40.Which of the following statements about historical security returns is/are true?11
Dalhousie UniversityFinal ExamWinter 2012Part 2. Problems ( 60 marks)Answer each of the problems in the allocated space on each page. If you requireadditional room, use the back of the previous page.Question (1) (20 marks)Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or12
Dalhousie UniversityFinal ExamWinter 2012maintains the current dividend once a year and then pays this dividend out in equal quarterly installments to its shareholders.Note: The Quarterly Dividend in part (b) should be rounded to FOUR decimal places, otherwise please make sure your final answers are accurate to TWO decimal place.a) Suppose a company currently pays a $4 annual dividend on its common stock in asingle annual installment, and management plans on raising this dividend by 5 percent per year, indefinitely. If the required return on this stock is 18 percent, whatis the current share price? (5 pts)