What rate of return could you expect to earn

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Reference no: EM131892538

1. Middlesex Fasteners Inc. has paid a dividend every year for the past five years. The first dividend paid was $1.6850 per share and last year the dividend was $2.12 per share. Shares are currently trading at $21.75 per share. If you purchased a share at the current price, what rate of return could you expect to earn?

A. 9.75%

B. 10.21%

C. 14.45%

D. 14.91%

E. 45.90%

2. Which of the following statements is correct?

A. In a best-efforts IPO, the underwriter guarantees that all stock will be sold.

B. The main advantages for a firm in going public are greater liquidity, better access to capital, and greater ability of investors to monitor the management of the firm.

C. A cash offer differs from a rights offer in that in the latter shares are offered to both existing shareholders and investors at large.

D. The announcement of an SEO usually raises a stock's price.

E. The firm commitment process is the most common practice for IPOs.

Reference no: EM131892538

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