Exam 11: Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

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Identify the types of firm-specific factors that increase a firm's nondiversifiable risk (systematic risk).Identify the types of firm-specific factors that increase a firm's diversifiable risk (idiosyncratic risk or nonsystematic risk).Why do models of risk-adjusted expected returns include no expected return premia for diversifiable risk?

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Question 41

Which of the following is not a with using a dividend-based valuation formula?

(Multiple Choice)

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Question 42

Using the above information,calculate Zonk's weighted-average cost of capital:

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Question 43

Suppose a firm has a market beta of 1.24 and the risk-free interest rate is 6.25.In addition,the excess return over the risk-free rate is 6.3%.Calculate the firm's cost of equity capital using the CAPM model.

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Question 44

Firm-specific factors that increase the firm's nondiversifiable risk include all of the following except:

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Question 45

For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend:

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Question 46

One rationale for using expected dividends in valuation is:

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Question 47

Showing 41 - 47 of 47

Which of the following is not a with using a dividend-based valuation formula?

Using the above information,calculate Zonk's weighted-average cost of capital:

Suppose a firm has a market beta of 1.24 and the risk-free interest rate is 6.25.In addition,the excess return over the risk-free rate is 6.3%.Calculate the firm's cost of equity capital using the CAPM model.

Firm-specific factors that increase the firm's nondiversifiable risk include all of the following except:

For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend:

One rationale for using expected dividends in valuation is:

Overview of Financial Reporting,financial Statement Analysis,and Valuation

Asset and Liability Valuation and Income Recognition

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Accounting Quality

Financing Activities

Investing Activities

Operating Activities

Forecasting Financial Statements

Valuation: Cash-Flow-Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

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