A investors earn a return called a spread b dealers

A. Investors earn a return called a spread.
B. Dealers pay a fee, called the spread, to brokers.
C. Investors sell at the ask price.
D . Dealers buy at the bid price.
E. Brokers maintain an inventory of securities.

A limit order to sell at $71 will be executed:
How much are you willing to pay for one share of stock if the company just paid an annual
dividend of $1.03, the dividends increase by 3 percent annually, and you require a rate of return
of 15 percent?
The common stock of Fine China sells for $38.42 a share. The stock is expected to pay an annual
dividend of $1.80 next year and increase that amount by 4 percent annually thereafter. What is
the market rate of return on this stock?

Wilbert's Clothing Stores just paid a $1.20 annual dividend and increases its dividend by 2.5
percent annually. You would like to purchase 100 shares of stock in this firm but realize that you
will not have the funds to do so for another three years. If you desire a 10 percent rate of return,
how much should you expect to pay for 100 shares when you can afford to buy this stock? Ignore
trading costs.
A. $1,640
B. $1,681
C. $1,723
D . $1,766
E. $1,810
Sammy Company had net earnings of $127,000 this past year of which $48,200 was just paid out
in dividends. The company's equity was $1,687,500. Lory has 190,000 shares outstanding with a
current market price of $10.93 per share. Both the number of shares and the dividend payout
ratio are constant. What is the required rate of return if the growth rate 6 percent?
Capital market history shows us that a correct ordering of the average arithmetic mean return
for asset classes, from lowest to highest, is: