Question 1
One would expect the price of a share of stock to fall if
◦ the interest rate rises.
◦ expected dividends paid on the stock rise.
◦ the risk of the business falls.
◦ the economy expands.
Question 2
Dividends
◦ must be paid annually.
◦ are a return on the money risked on a share of stock.
◦ are set by the Securities and Exchange commission.
◦ are guaranteed.
