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What is the minimum market value of a warrant that entitles the holder to one stock of ABC Corp at an exercise price o $16 until Dec 31, 2022. The current stock price of ABC Corp. is $25? Answer: A share of common stock has just paid a dividend today of $3. If the expected growth rate for this stock is 2%, an investors' required rate of return is 8%, what is the expected stock price? Answer: Which of the following statements regarding common and preferred shares is TRUE? Select one: a. All common shares must have the same rights to vote and receive dividends. b. Dual class stock may give some classes of stock more votes per share than the other classes. c. A major disadvantage of financing with preferred stock is that preferred stockholders typically have extra voting rights over the common stockholders. O d. A proxy gives a shareholder the right to purchase additional shares issued by the company in proportion to their share holdings before it is offered to outsiders e. A big advantage in using preferred stock financing is that dividends paid on preferred stocks are tax deductible SnoMountain Resorts Ltd.'s projected capital budget is $1,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $500,000. If the company follows a residual dividend policy, what is the amount of dividends it can pay out, if any? $ Answer: SnoMountain Resorts Ltd.'s projected capital budget is $1,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $500,000. If the company follows a residual dividend policy, what is the amour of dividends it can pay out, if any? $ Answer: SnoMountain Resorts Ltd.'s projected capital budget is $1,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $500,000. If the company follows a residual dividend policy, what is the amount of dividends it can pay out, if any? $ Answer: Shareholder Distributions: Which of the following statements is TRUE? Select one: a. The stock price will drop immediately after a share repurchase transaction. b. After a 2-for-1 stock split, a company's price per share should fall but the number of shares outstanding will increase O c A 10% stock dividend will increase the value of the shareholder's investment in the company by 10%. d. Under a Dividend Reinvestment Plan (DRIP) a shareholder does not have to pay any taxes on the dividends that are reinvested in company shares since no cash was received

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