1. If the dividend yield for year 1 is expected to be 5% based on a stock price of $25, what will the year 4 dividend be in dividends grow annually at a constant rate of 6%? (Hint: Easier than it may seem.) a.$1.33 b. $1.49 c.$1.58 d. $1.67
2. Which of the following financially benefit due to High Frequency Trading? a.Mutual funds b. Foreign investors c.The Federal Reserve d. NYSE
3. Which of the following would be considered bullish (indicative of an optimistic market)?
a. Buying credit default swapsb. The FED is selling treasury bondsc. Venture capitalists are unsuccessful in converting ratchets into equityd. Defined contribution funds are decreasing.