1. | The shares or stocks which are protected against withdrawals of funds by an original stock owners are classified as |
a. | protected shares |
b. | founders shares |
c. | withdrawal shares |
d. | original shares |
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Answer: (b).founders shares
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2. | The method of stock valuation which is the multiple of earnings per share, book value and net income is classified as |
a. | stock multiple analysis |
b. | dividend multiple analysis |
c. | market multiple analysis |
d. | stock and multiple analysis |
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Answer: (c).market multiple analysis
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3. | The preferred dividend is $50 and the required rate of return is 2.5% then the value of preferred stock would be |
a. | 0.2 |
b. | 125 |
c. | 2000 |
d. | 52.5 |
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Answer: (c).2000
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4. | In expected rate of return for constant growth, the stock price must grow according to an expected rate and |
a. | at same price |
b. | at different price |
c. | at yielded price |
d. | at buying price |
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Answer: (a).at same price
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5. | The dividend present value for period of non-constant growth in addition with horizon value is used to calculate |
a. | stock extrinsic value |
b. | stock intrinsic value |
c. | dividend intrinsic value |
d. | stock intrinsic value |
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Answer: (d).stock intrinsic value
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