Consider an investment with the following payoffs and probabilities: State of the Economy Probability Return Stability .50 1,000 Good Growth .50 2,000 Determine the expected return for this investment

Refer to Figure 4-15. For each unit sold, the price sellers receive after the tax (net of tax) is

A) $20. B) $22. C) $27. D) $32.

A preferred shareholder

a. receives a stated dividend yield if profits are sufficient b. can vote at shareholder meetings on important corporate matters c. can vote at shareholder meetings only on the election of the members of the board of directors d. can convert his or her shares into common shares e. receives a dividend before bondholders receive anything