Solved Questions for Financial Markets and Institutions - Assignment | FINA 4400, Assignments of Financial Market

Download Solved Questions for Financial Markets and Institutions - Assignment | FINA 4400 and more Assignments Financial Market in PDF only on Docsity! FINA 4400 Additional Examples: Chapter 8 1. If all preferred dividend payments that have been missed must be paid before any common stock dividend can be paid the preferred stock is called _____ preferred stock. A. Cumulative B. Participating C. Nonparticipating D. Voting E. Dual class 2. Which of the following indices are value weighted? I. NYSE Composite II. S&P500 III. NASDAQ Composite IV. Dow Jones Industrial Average A. I, II, III and IV B. I only C. II only D. II, III and IV only E. I, II and III only 3. A firm is using cumulative voting and four director spots are up for election. There are 3.6 million shares outstanding. How many shares must a minority owner own or control to ensure that he or she can gain control of one seat on the board of directors? A. 900,001 B. 880,001 C. 720,001 D. 1,800,001 E. 1,750,001 [((1 / (4+1))*3.6 million] + 1 4. Today Stock A is worth $20 and has 1000 shares outstanding. Stock B costs $30 and has 500 shares outstanding. Stock C is priced at $50 per share and has 1200 shares outstanding. If tomorrow Stock A is priced at $22, Stock B at $35 and Stock C is worth $48 what would the value weighted index amount equal? (The index has a base period value of 100) A. 35.00 B. 105.00 C. 108.44 D. 101.45 E. 102.21