1) John bought 100 stock of Ford for $8 per share a year ago. Today he decides to sell the stocks for $16 per share. During this year, John also received $0.20 dividend per share. What is the dividend yield on Ford stock?
A. 1.25%
B. 2.5%
C. 5%
D. 6.5%
2) Which of the following securities represents ownership claim and residual claim in a company?
A. Common stocks
B. Preferred stocks
C. Convertible preferred stocks
D. Convertible bonds