The board of directors if the firm uses cumulative voting

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1. A semiannual 5.4 percent coupon bond currently sells for par value. What is the maturity on this bond?

A. The bond must mature in one year.

B. The bond could have any maturity date.

C. The bond must be maturing today.

D. The bond must mature in 10 years.

E. The bond must be a perpetual security.

2. For the past six years, the price of Slippery Rock stock has been increasing at a rate of 8.21 percent a year. Currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. What is the dividend yield?

3.20 percent

2.75 percent

3.69 percent

4.28 percent

3.44 percent

3. There are three open positions on the board of directors of XYZ Enterprises. The company has 264,000 shares of stock outstanding. Each share is entitled to one vote. How many shares of stock must you own to guarantee your personal election to the board of directors if the firm uses cumulative voting?

82,001 shares

75,001 shares

88,001 shares

72,000 shares

66,001 shares

Reference no: EM131327411

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