Stock valuation
Quiz by Dương Đăng Khoa
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20 questions
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- Q1CK Company stockholders expect to receive a year-end dividend of $5 per share and then be sold for $115 dollars per share. If the required rate of return for the stock is 20%, what is the current value of the stock130120130110120s
- Q2Will Co. is expected to pay a dividend of $2 per share at the end of year -1(D1) and the dividends are expected to grow at a constant rate of 4% forever. If Pv is $20 per share,what is the R?11%10%16%none of above120s
- Q3ACB has just now paid a dividend of $2.83 per share (D0); the dividends are expected to grow at a constant rate of 6% per year forever. If the required rate of return on the stock is 16%, what is the current value on stock, after paying the dividend?none of above282213120s
- Q4The expected rate of return or the cost of equity capital is estimated as followsDividend yield/expected rate of growth in dividendsDividend yield + expected rate of growth in dividends(Dividend yield) * (expected rate of growth in dividends)all of above60s
- Q5Which of the following is another name for the required return on a stock?discount rateexchange ratebank interest ratenone of above120s
- Q6Corporation B is a normal-growth company that expects to earn 13% on reinvested earnings. If the company pays 30% of its earnings as dividends, what will be the stock’s dividend growth rate?8.20%9.10%1.90%4.80%120s
- Q7Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter. What is the expected dividend per share in year 52.23.193.122.54120s
- Q8ACB has just paid a dividend of $1 per share. The dividends are expected to grow at 25% per year for the next three years and at the rate of 5% per year thereafter. If the required rate of return is 18%, what is the current value of the stock?11.2612.9712.1918.12120s
- Q9has paid a dividend $3 per share out of earnings of $5 per share. If the book value per share is $40 and the market price is 52.50 per share, calculate the required rate of return on the stock12%11%13%none of above120s
- Q10River Co. has paid a dividend $2 per share out of earnings of $4 per share. If the book value per share is $25 and is currently selling for $40 per share, calculate the required rate of return on the stock13.40%18.12%10%11%30s
- Q11Generally high growth stocks payhigh didivenderrastic dividendno dividendnone of above120s
- Q12Which one of the following types of stock is defined by the fact that it receives no preferential treatment in respect to either dividends or bankruptcy proceedingsnone of aboveprefered stockcommon stockbond120s
- Q13What are the distributions to shareholders by a corporation calledsalesDividendnet incomeretained earning30s
- Q14Which one of the following is a type of equity security that has a fixed dividend and a priority status over other equity securitiescommon stocknone of abovebondprefered stock120s
- Q15The dividend growth modelall of abovecan be used to value zero-growth stocksassumes that dividends increase at a constant rate forevercan be used to compute a stock price at any point in time120s