1. The stock valuation model that determines the current stock price by dividing the next annual dividend amount by the excess of the discount rate less the dividend growth rate is called the _____ model.
A. zero growthrepeatability
B. dividend growth
C. capital pricing
D. earnings capitalization
E. differential growth
2. Next year's annual dividend divided by the current stock price is called the:
A. yield to maturity.
B. total yield.
C. dividend yield.
D. capital gains yield.
E. earnings yield.
古诗70首3. The rate at which a stock's price is expected to appreciate (or depreciate) is called the _____ yield.
A. current
B. total
C. dividend
D. capital gains
E. Earnings
4. A form of equity which receives no preferential treatment in either the payment of divid
ends or in bankruptcy distributions is called _____ stock.
A. dual class
B. cumulative
C. deferred
D. preferred
E. common
5. Payments made by a corporation to its shareholders, in the form of either cash, stock or payments in kind, are called:
A. retained earnings.
B. net income.
C. dividends.
D. redistributions.
E. infud equity.
immediate
6. The constant dividend growth model is:
A. generally ud in practice becau most stocks have a constant growth rate.
B. generally ud in practice becau the historical growth rate of most stocks is constant.
smicC. generally not ud in practice becau most stocks grow at a non constant rate.
D. generally not ud in practice becau the constant growth rate is usually higher than the required rate of return.
E.fareastmovement bad on the assumption Dow 30 reprents a good estimate of the market index.
7. The constant dividend growth model:
I. assumes that dividends increa at a constant rate forever.
II. can be ud to compute a stock price at any point of time.
III. states that the market price of a stock is only affected by the amount of the dividend.
IV. considers capital gains but ignores the dividend yield.
A. I only
B. II only
C. III and IV only
D. I and II only
E. I, II, and III only
8. The underlying assumption of the dividend growth model is that a stock is worth:
A. the same amount to every investor regardless of their desired rate of return.
B. the prent value of the future income which the stock generates.
C. an amount computed as the next annual dividend divided by the market rate of return.
D. the same amount as any other stock that pays the same current dividend and has the same required rate of return.
E.学英语网站 an amount computed as the next annual dividend divided by the required rate of return.
9. Assume that you are using the dividend growth model to value stocks. If you expect the market rate of return to increa across the board on all equity curities, then you should also expect the:
A. market values of all stocks to increa, all el constant.
大学体验英语2B. market values of all stocks to remain constant as the dividend growth will offt the inc
rea in the market rate.
C. market values of all stocks to decrea, all el constant.
少儿游戏D. stocks that do not pay dividends to decrea in price while the dividend-paying stocks maintain a constant price.
E. dividend growth rates to increa to offt this change.
10. Latcher's Inc. is a relatively new firm that is still in a period of rapid development. The company plans on retaining all of its earnings for the next six years. Seven years from now, the company projects paying an annual dividend of $.25 a share and then increasing that amount by 3% annually thereafter. To value this stock as of today, you would most likely determine the value of the stock _____ years from today before determining today's value.
A. 4
B. 5
C. 6
D. 7
E. 8
11. The Robert Phillips Co. currently pays no dividend. The company is anticipating dividends of $0, $0, $0, $.10, $.20, and $.30 over the next 6 years, respectively. After that, the company anticipates increasing the dividend by 4% annually. The first step in computing the value of this stock today, is to compute the value of the stock when it reaches constant growth in year:
A. 3
B. 4
C. 5
D. 6
E. 7
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12. Differential growth refers to a firm that increas its dividend by:
A. three or more percent per year.
B. a rate which is most likely not sustainable over an extended period of time.
C. a constant rate of two or more percent per year.
D. $.10 or more per year.
E. an amount in excess of $.10 a year.
13. The total rate of return earned on a stock is comprid of which two of the following?
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