12.Which of the following statements is (are) correct?

(x)Although the NASDAQdoes have some large firms, it is mostlycomposed of small high-technology firms.

(y)Since the DJIA is composed of the 30 largest companies in theU.S, it is not uncommon for the NASDAQand DJIA to move in oppositedirections on any giventradingday.

(z)The S&P 500 index is usually higher than the DJIA becausethe DJIA is composed of the 30 largest companies and the S&P iscomposed of 500 companies from ten different sectors of theeconomy.

A.(x), (y) and (z)B.(x) and (y) onlyC.(x) and (z) onlyD.(y) and(z) onlyE.(x) only

13.Which of the following statements is (are) correct?

(x)Preferred stock is valued as if it were a perpetuity becausepreferred stock dividends are assumed to be infinite in they may bedelayed at times.

(y)Preferred dividends are typically given morelegal prioritythan bond interest payments.

(z)Preferred dividends have a higher payment priority than docommon dividends.

A.(x), (y) and (z)B.(x) and (y) onlyC.(x) and (z) onlyD.(y) and(z) onlyE.(z) only

20.Red Rock, Inc.paid a dividend of $1.62per share yesterday.Its dividends are expected to grow at a steady rate of 6.0 percentper year. What are Red Rock’s dividends expected to be for the nextthree years?

A.$1.62, $1.68, $1.74

B.$1.62, $1.72, $1.72

C.$1.62, $1.72, $1.82

D.$1.72, $1.82, $1.82

E.$1.72, $1.82, $1.93