C214 Topic 7 Review Question and
answers verified 2026
What is the value of a preferred stock where the dividend rate is 15 percent on a $100 par value? The
appropriate discount rate is 12 percent. - correct answer ✔$125.00
You are looking to purchase Ordway common stock at $55 per share, hold it one year, and sell after a
dividend of $3 is paid. What would the stock price need to be in order to satisfy your required rate of
return of 15 percent? - correct answer ✔$60.25
Some types of equity give the owner the right to vote on company matters. - correct answer ✔True
If we do an analysis and determine a company is really good, this means it is also a good investment. -
correct answer ✔False
Preferred stock is reserved for established companies like utilities and is not used for new start-up
ventures. - correct answer ✔False
Calculate the value of a preferred stock that pays a dividend of $5 per share and your required rate of
return is 14 percent. - correct answer ✔$35.71
The control issues involved in running a firm are known as: - correct answer ✔Corporate Governance
ABC's common stock currently sells for $36.68 per share. The company's executives anticipate a growth
rate of 6 percent and a future dividend of $1.75. What is your expected rate of return? - correct answer
✔10.77%
answers verified 2026
What is the value of a preferred stock where the dividend rate is 15 percent on a $100 par value? The
appropriate discount rate is 12 percent. - correct answer ✔$125.00
You are looking to purchase Ordway common stock at $55 per share, hold it one year, and sell after a
dividend of $3 is paid. What would the stock price need to be in order to satisfy your required rate of
return of 15 percent? - correct answer ✔$60.25
Some types of equity give the owner the right to vote on company matters. - correct answer ✔True
If we do an analysis and determine a company is really good, this means it is also a good investment. -
correct answer ✔False
Preferred stock is reserved for established companies like utilities and is not used for new start-up
ventures. - correct answer ✔False
Calculate the value of a preferred stock that pays a dividend of $5 per share and your required rate of
return is 14 percent. - correct answer ✔$35.71
The control issues involved in running a firm are known as: - correct answer ✔Corporate Governance
ABC's common stock currently sells for $36.68 per share. The company's executives anticipate a growth
rate of 6 percent and a future dividend of $1.75. What is your expected rate of return? - correct answer
✔10.77%
