Question 1

The following are auction markets EXCEPT:

Accepted Answer

A) New York Stock Exchange. 
B) London Stock Exchange. 
C) Tokyo Stock Exchange. 
D) Nasdaq. 
A) New York Stock Exchange. 
B) London Stock Exchange. 
C) Tokyo Stock Exchange. 
D) Nasdaq.

Question 2

The In-Tech Co.just paid a dividend of $1 per share.Analysts expect its dividend to grow at 25% per year for the next three years and then 5% per year thereafter.If the required rate of return on the stock is 18%,what is the current value of the stock?

Accepted Answer

A) $12.97 
B) $11.93 
C) $15.20 
D) $15.78 
A) $12.97 
B) $11.93 
C) $15.20 
D) $15.78

Question 3

The following are foreign companies that are traded on the New York Stock Exchange:
i.Toyota; II)Brazil Telecom; III)Canadian Pacific; IV)Tata Motors; V)General Electric

Accepted Answer

A) I,II,and III only 
B) I,II,III,and IV only 
C) I,II,III,and V only 
D) all of the given companies 
A) I,II,and III only 
B) I,II,III,and IV only 
C) I,II,III,and V only 
D) all of the given companies

Question 4

The major secondary market for GE shares is:

Accepted Answer

A) London Stock Exchange. 
B) New York Stock Exchange. 
C) Nasdaq. 
D) Tokyo Stock Exchange. 
A) London Stock Exchange. 
B) New York Stock Exchange. 
C) Nasdaq. 
D) Tokyo Stock Exchange.

Question 5

The cost of equity capital equals the dividend yield minus the growth rate in dividends for a constant dividend growth stock.

Accepted Answer

A) True 
 B)False

Question 6

Company X has a P/E ratio of 10 and a stock price of $50 per share.Calculate earnings per share of the company.

Accepted Answer

A) $6 per share 
B) $10 per share 
C) $0.20 per share 
D) $5 per share 
A) $6 per share 
B) $10 per share 
C) $0.20 per share 
D) $5 per share

Question 7

Generally high growth stocks pay:

Accepted Answer

A) low or no dividends. 
B) high,steadily growing dividends. 
C) erratic dividends. 
D) decreasing dividends. 
A) low or no dividends. 
B) high,steadily growing dividends. 
C) erratic dividends. 
D) decreasing dividends.

The following are auction markets EXCEPT:

The In-Tech Co.just paid a dividend of $1 per share.Analysts expect its dividend to grow at 25% per year for the next three years and then 5% per year thereafter.If the required rate of return on the stock is 18%,what is the current value of the stock?

The following are foreign companies that are traded on the New York Stock Exchange: i.Toyota; II)Brazil Telecom; III)Canadian Pacific; IV)Tata Motors; V)General Electric

The major secondary market for GE shares is:

The cost of equity capital equals the dividend yield minus the growth rate in dividends for a constant dividend growth stock.

Company X has a P/E ratio of 10 and a stock price of $50 per share.Calculate earnings per share of the company.

Generally high growth stocks pay:

Introduction to Corporate Finance

How to Calculate Present Values

Valuing Bonds

Net Present Value and Other Investment Criteria

Making Investment Decisions With the Net Present Value Rule

Introduction to Risk and Return

Portfolio Theory and the Capital Asset Pricing Model

Risk and the Cost of Capital

Project Analysis

Investment, Strategy, and Economic Rents

Agency Problems, Compensation, and Performance Measurement

Efficient Markets and Behavioral Finance

An Overview of Corporate Financing

How Corporations Issue Securities

Payout Policy

Does Debt Policy Matter

How Much Should a Corporation Borrow

Financing and Valuation

Understanding Options

Valuing Options

Real Options

Credit Risk and the Value of Corporate Debt

The Many Different Kinds of Debt

Leasing

Managing Risk

Managing International Risks

Financial Analysis

Financial Planning

Working Capital Management

Mergers

Corporate Restructuring

Governance and Corporate Control Around the World

Filters

Exam 4: The Value of Common Stocks

The following are auction markets EXCEPT:

The In-Tech Co.just paid a dividend of $1 per share.Analysts expect its dividend to grow at 25% per year for the next three years and then 5% per year thereafter.If the required rate of return on the stock is 18%,what is the current value of the stock?

The following are foreign companies that are traded on the New York Stock Exchange: i.Toyota; II)Brazil Telecom; III)Canadian Pacific; IV)Tata Motors; V)General Electric

The major secondary market for GE shares is:

The cost of equity capital equals the dividend yield minus the growth rate in dividends for a constant dividend growth stock.

Company X has a P/E ratio of 10 and a stock price of $50 per share.Calculate earnings per share of the company.

Generally high growth stocks pay:

Introduction to Corporate Finance

How to Calculate Present Values

Valuing Bonds

Net Present Value and Other Investment Criteria

Making Investment Decisions With the Net Present Value Rule

Introduction to Risk and Return

Portfolio Theory and the Capital Asset Pricing Model

Risk and the Cost of Capital

Project Analysis

Investment, Strategy, and Economic Rents

Agency Problems, Compensation, and Performance Measurement

Efficient Markets and Behavioral Finance

An Overview of Corporate Financing

How Corporations Issue Securities

Payout Policy

Does Debt Policy Matter

How Much Should a Corporation Borrow

Financing and Valuation

Understanding Options

Valuing Options

Real Options

Credit Risk and the Value of Corporate Debt

The Many Different Kinds of Debt

Leasing

Managing Risk

Managing International Risks

Financial Analysis

Financial Planning

Working Capital Management

Mergers

Corporate Restructuring

Governance and Corporate Control Around the World

Filters