Reference no: EM132910304

Problem 1: The primary goal of a publicly owned corporation is to ________.

Select one:

a. maximize dividends per share
b. maximize earnings per share after taxes
c. maximize shareholder wealth
d. minimize shareholder risk

Problem 2: The purpose of secondary trading is to

Select one:

a. provide liquidity and competition between investments.
b. provide a market for securities not handled in primary trading.
c. provide jobs for brokers and dealers.
d. provide lower commissions.

Problem 3: The stock of the Wood Corporation has a required return of 16 percent. Woods current price is RM55 and it current dividend per share is RM1.80. Determine Wood's dividend growth rate.

Select one:

a. 10.65 percent
b. 11.11 percent
c. 13.75 percent
d. 12.81 percent