Investment Vehicles Flashcards
Dividend discount pricing model =
Dividend / (Required Rate of Return - Growth Rate)
Preferred dividends are typically paid ______
semi-annually
Corporate holders of preferred can exclude _____ of income received from tax
70% (if they own more than 20% of the issue they can exclude 80%)
Theoretical price of preferred stock =
annual income / market yield
Preferred prices will _____ when interest rates _____
fall when interest rates rise
Preferred stock has no _____ or ______ rights
voting or preemptive
Participating preferred is also known as ______
performance preferred
Do ADRs have voting or preemptive rights?
NO
Non-sponsored ADRs trade ____
OTC
“Intestate” means that a person had no ____
will
Preferred dividends can ONLY be paid in ________
cash
The Federal Farm Credit System issues bonds for all of the farmers’ agencies - these are _____, _____, and ______
Federal Intermediate Credit Banks, the Federal Land Banks, and the Banks for Cooperatives.
Federal Farm Credit issues are exempt from _______
state and local taxes on interest income
Federal Farm Credit issues are backed by ______
the full faith and credit of the Federal Farm Credit System Banks
The Federal Intermediate Credit Bank is an “intermediary” providing ______ to farmers.
short term loans
