The risk associated with the purchase of common stock is a pure risk.

An agent who buys and sells securities from inventory is called a:

A. floortrader. B. dealer. C. commission broker. D. broker. E. floor broker.

Village East expects to pay an annual dividend of $1.40 per share next year, and $1.68 per share for the following two years. After that, the company plans to increase the dividend by 3.4 percent annually. What is this stock's current value at a discount rate of 13.7 percent?

A. $14.09 B. $17.28 C. $15.15 D. $16.08 E. $18.18