SIE Exam Module 1 with all Correct & 100% Verified
Answers |Latest Version |Guaranteed to Pass
Authorized stock is all of the following, except: ✔Correct Answer-It is arbitrarily determined at
the time of incorporation and may not be changed.
Authorized stock is all of the answers listed, except the number of authorized shares may be
changed by a vote of the shareholders.
Common stockholders do not have the right to vote on which of the following issues?
✔Correct Answer-Bankruptcy.
Common stockholders do not have voting power in the matter of bankruptcy.
It may be necessary for a company to repurchase some of its stock, to increase its treasury
stock, for which one of the following reasons: ✔Correct Answer-To maintain control of the
company.
In addition to maintaining control, a company may want to increase its earnings per share, fund
employee stock option plans, or use shares to pay for a merger or acquisition.
ABC common stock declined dramatically in value over the last quarter but the dividend it
declared for payment this quarter has remained the same. The dividend yield on the stock has:
✔Correct Answer-Gone up as the price of ABC has fallen.
The yield on the stock will have gone up as the price has fallen because the dividend has
remained constant.
An investor owns 100 shares of XYZ 8% participating preferred stock. XYZ's common stock pays a
quarterly dividend of $.25. How much will the investor earn each year in dividends? ✔Correct
Answer-The investor will receive $8 per share × 100 shares: $800 plus $1 per share because it is
participating, so $800 + $100 = $900.
An investor who buys a 7% cumulative preferred stock will receive semiannual dividends of:
✔Correct Answer-$3.50 per share.
The investor who buys a 7% preferred stock is entitled to $7 per year or $3.50 every six months.
As the owner of a cumulative preferred stock, an investor would have all of the following rights,
except: ✔Correct Answer-The right to exchange the preferred for the underlying common
shares.
A holder of a cumulative preferred has all the rights listed, except the right to convert the
preferred into common stock.
A corporation may pay a dividend in which of the following ways? Choose the most complete
response. ✔Correct Answer-1. Stock
Answers |Latest Version |Guaranteed to Pass
Authorized stock is all of the following, except: ✔Correct Answer-It is arbitrarily determined at
the time of incorporation and may not be changed.
Authorized stock is all of the answers listed, except the number of authorized shares may be
changed by a vote of the shareholders.
Common stockholders do not have the right to vote on which of the following issues?
✔Correct Answer-Bankruptcy.
Common stockholders do not have voting power in the matter of bankruptcy.
It may be necessary for a company to repurchase some of its stock, to increase its treasury
stock, for which one of the following reasons: ✔Correct Answer-To maintain control of the
company.
In addition to maintaining control, a company may want to increase its earnings per share, fund
employee stock option plans, or use shares to pay for a merger or acquisition.
ABC common stock declined dramatically in value over the last quarter but the dividend it
declared for payment this quarter has remained the same. The dividend yield on the stock has:
✔Correct Answer-Gone up as the price of ABC has fallen.
The yield on the stock will have gone up as the price has fallen because the dividend has
remained constant.
An investor owns 100 shares of XYZ 8% participating preferred stock. XYZ's common stock pays a
quarterly dividend of $.25. How much will the investor earn each year in dividends? ✔Correct
Answer-The investor will receive $8 per share × 100 shares: $800 plus $1 per share because it is
participating, so $800 + $100 = $900.
An investor who buys a 7% cumulative preferred stock will receive semiannual dividends of:
✔Correct Answer-$3.50 per share.
The investor who buys a 7% preferred stock is entitled to $7 per year or $3.50 every six months.
As the owner of a cumulative preferred stock, an investor would have all of the following rights,
except: ✔Correct Answer-The right to exchange the preferred for the underlying common
shares.
A holder of a cumulative preferred has all the rights listed, except the right to convert the
preferred into common stock.
A corporation may pay a dividend in which of the following ways? Choose the most complete
response. ✔Correct Answer-1. Stock
