Investor A owns 10 of the common stock of IDE Corporation. After IDE completes a 2-for-1 stock
split, Investor A will own 20 of the common stock of the corporation.
Indicate whether the statement is true or false
Question 2
An 8 percent preferred stock with a market price of 110 per share and a 100 par value pays a cash dividend of ________.
A) 4.00
B) 80.00
C) 8.00
D) 8.80
E) 32.00
Question 3
Which of the following statements is FALSE?
A) The APR can be referred to as a promised annual percentage rate.
B) Although an APR is quoted on an annual basis, interest can be paid quarterly.
C) The period in which interest is applied or the frequency of times interest is added to an account each year is called the compounding period or compounding periods per year.
D) Although an APR is quoted on an annual basis, interest can be paid monthly but never daily.
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