1. Which of the following is NOT a money market instrument?
Commercial paper
Treasury bills
Corporate bonds
Bankers' acceptances
2. Balloons Inc normally pays a quarterly dividend. The last such dividend paid was $1.55, all future quarterly dividends are expected to grow at 5 percent, and the firm faces a required rate of return on equity of 12 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $2.75 per share that is not expected to affect any other future dividends, what should the stock price be?
A) $23.25
B) $13.75
C) $24.25
D) $22.92