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Author Question: Angel recently purchased a block of 100 shares of Hayley's Optical common stock for 6,000. The stock ... (Read 112 times)

luvbio

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on: Jul 10, 2018
Angel recently purchased a block of 100 shares of Hayley's Optical common stock for 6,000. The stock is expected to provide an annual cash flow of dividends of 400 indefinitely.
 
  Assuming a discount rate of 8 percent, how does the price Angel paid compare to the value of the stock?

Question 2

The Maloney Act led to the creation of
 
  A)
 
  the Securities and Exchange Commission (SEC).
  B)
 
  the American Arbitration Association (AAA).
  C)
 
  the National Association of Securities Dealers (NASD).
  D)
 
  the Securities Investor Protection Commission (SIPC).


TINA

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Reply #1 on: Jul 10, 2018
Answer to Question 1

The value of the stock is = = 5,000
Angel paid 1,000 more than the value of the stock.

Answer to Question 2

C


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