Question 1

What is the required rate of return on a share that pays a $1 dividend each year and is currently valued at $16.66?

Accepted Answer

A) 6% 
B) 16.66% 
C) 6.66% 
D) none of the options given. 
A) 6% 
B) 16.66% 
C) 6.66% 
D) none of the options given.

Question 2

The return on a share listed on the stock exchange is likely to be:

Accepted Answer

A) less than the short-term rate of interest but greater than the long-term rate of interest. 
B) more than the short-term rate of interest but less than the long-term rate of interest. 
C) greater than the market rate of interest. 
D) comparable to the rate of return earned on government securities. 
A) less than the short-term rate of interest but greater than the long-term rate of interest. 
B) more than the short-term rate of interest but less than the long-term rate of interest. 
C) greater than the market rate of interest. 
D) comparable to the rate of return earned on government securities.

What is the required rate of return on a share that pays a $1 dividend each year and is currently valued at $16.66?

The return on a share listed on the stock exchange is likely to be:

Introduction

Consumption, Investment and the Capital Market

The Time Value of Money: An Introduction to Financial Mathematics

Project Evaluation: Principles and Methods

The Application of Project Evaluation Methods

Risk and Return

The Capital Market

Sources of Finance: Equity

Sources of Finance: Debt

Payout Policy

Principles of Capital Structure

Capital Structure Decisions

The Cost of Capital and Taxation Issues in Project Evaluation

Leasing and Other Equipment Finance

Capital Market Efficiency

Futures Contracts

Options and Contingent Claims

Analysis of Takeovers

International Financial Management

Management of Short-Term Assets: Inventory

Management of Short-Term Assets: Liquid Assets and Accounts Receivable

Filters

Exam 4: Applying the Time Value of Money to Security Valuation

What is the required rate of return on a share that pays a $1 dividend each year and is currently valued at $16.66?

The return on a share listed on the stock exchange is likely to be:

Introduction

Consumption, Investment and the Capital Market

The Time Value of Money: An Introduction to Financial Mathematics

Project Evaluation: Principles and Methods

The Application of Project Evaluation Methods

Risk and Return

The Capital Market

Sources of Finance: Equity

Sources of Finance: Debt

Payout Policy

Principles of Capital Structure

Capital Structure Decisions

The Cost of Capital and Taxation Issues in Project Evaluation

Leasing and Other Equipment Finance

Capital Market Efficiency

Futures Contracts

Options and Contingent Claims

Analysis of Takeovers

International Financial Management

Management of Short-Term Assets: Inventory

Management of Short-Term Assets: Liquid Assets and Accounts Receivable

Filters