Whistle Corp. has a preferred stock that pays a dividend of 2.40. If you are willing to purchase the
stock at 11, what is your required rate of return? (Round your answer to the nearest .1 and
assume that there are no transaction costs.)
A) 9.1 B) 21.8 C) 11.0 D) 20.1
Question 2
You bought a stock at 50 a share, and it has increased in price to 70 a share. You think its price will increase even more but you are also concerned that it might go back to 50, eliminating the entire gain.
Given this information, you should place which kind of order?
A)
Stop-loss
B)
Profit-retention
C)
Limit
D)
Deferred sales