1)

i. Which of the following characterizes a market order?

a) A market order, which is considered a small order, is when 100 shares of a stock are ordered

b) A market order is when the investor specifies the maximum price they are willing to pay, and are willing to wait until the shares are available at that price

c) A market order is a system that transmits small orders

d) A market order is where the investor does not specify a price, rather wants the order to execute immediately at the most favorable price available

e) A market order takes place when there are not enough shares outstanding to purchase and so investors are placed on a waiting list

ii) A stock will pay dividends of $3, $5, and $10 over the next three years, and then increase dividends at a rate of 7% afterwards. Its required rate of return is 20%. What is the value of the stock? Round to the penny.

iii. A stock will pay a dividend of $3 at the end of the year. It sells today for $103 and its dividends are expected grow at a rate of 7%. What is the implied rate of return on this stock? Enter in percent and round to two decimal places.

iv. A company pays out 29% of its earnings in dividends. Its return on equity is 15%. What is its growth rate? Enter in percent and round to two decimal places.