Securities represents ownership claim and residual claim

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Reference no: EM13911000

1) John bought 100 stock of Ford for $8 per share a year ago. Today he decides to sell the stocks for $16 per share. During this year, John also received $0.20 dividend per share. What is the dividend yield on Ford stock?

A. 1.25%

B. 2.5%

C. 5%

D. 6.5%

2) Which of the following securities represents ownership claim and residual claim in a company?

A. Common stocks

B. Preferred stocks

C. Convertible preferred stocks

D. Convertible bonds

Reference no: EM13911000

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