SEC 8.1
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Questions and Answers

  1. Seabird Airlines, Inc., pays a $0.40 per share quarterly dividend, and shares are currently trading at $32 a share. The current yield for Seabird is A. 1.25% B. 2.50% C. 5% D. 10%

  • 1.25%
  • 2.50%
  • 5% (correct)
  • 10%

    ABC Corp. 6% preferred stock ($100 par) is currently trading at $120 a share. The dividend yield of the preferred shares is which of the following? A. 6% B. 5% C. 3% D. 2%

  • 6%
  • 5% (correct)
  • 3%
  • 2%
    1. Your customer Mickey owned 100 shares of Jim's Burger Shack. Mickey purchased the shares three years ago for $55 a share and recently sold the shares for $67. Over the holding period, Jim's Burger Shack paid a quarterly dividend of $0.25. On the sale, Mickey realizes which of the following? A. $15 per share capital gain B. $15 per share capital loss C. $12 per share capital loss D. $12 per share capital gain

  • $15 per share capital gain
  • $15 per share capital loss
  • $12 per share capital loss
  • $12 per share capital gain (correct)
    1. Your customer owned 100 shares of the Odiferous Tobacco Co. They purchased the shares one year ago for $60 a share and recently sold the shares for $62. Over the holding period, Odiferous Tobacco paid a quarterly dividend of $0.25. What is your customer's total return? A. $3 5% C. $5 D. 3%

    <p>5%</p> Signup and view all the answers

    1. Kelly purchased 10 shares of Finnish Furniture stock for $100 a share four years ago. Two years ago, the stock underwent a 4:1 split, adjusting Kelly's cost basis to $25 a share. Kelly sells 10 shares for $30 a share. What is Kelly's capital gain (or loss)? A. $50 gain B. $50 loss C. $70 gain D. $70 loss

    <p>$50 gain</p> Signup and view all the answers

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