Stocks Valuation and Stock Market Equilibrium MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Stocks Valuation and Stock Market Equilibrium, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Stocks Valuation and Stock Market Equilibrium MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Stocks Valuation and Stock Market Equilibrium mcq questions that explore various aspects of Stocks Valuation and Stock Market Equilibrium problems. Each MCQ is crafted to challenge your understanding of Stocks Valuation and Stock Market Equilibrium principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Stocks Valuation and Stock Market Equilibrium MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

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Stocks Valuation and Stock Market Equilibrium MCQs | Page 4 of 14

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Q31.
The value of stock is $300 and the preferred dividend is $60 then the required rate of return would be
Discuss
Answer: (b).0.2
Q32.
The tracking stock of the company is also classified as
Discuss
Answer: (a).target stock
Q33.
An expected dividend yield is 5.5% and the expected rate of return is 11.5% then the constant growth rate would be
Discuss
Answer: (d).0.06
Q34.
A right which controls and prevents transfer from current stockholders to other new stockholders is considered as
Discuss
Answer: (a).corporate charter
Q35.
In market analysis, the market multiple is multiplied by firm earnings before interest, taxes, depreciation and amortization to calculate
Discuss
Answer: (b).firm total value
Q36.
The dividend will grow at non-constant rate for N periods and the periods such as N is classified as
Discuss
Answer: (d).both b and c
Q37.
The beginning price is $25 and the capital gains yield is 5% then the capital gain would be
Discuss
Answer: (b).1.25
Q38.
If an expected final stock price is $85 and an original investment is $70 then the value of expected capital gain would be
Discuss
Answer: (a).15
Q39.
The third step in calculating value of stock with non-constant growth rate is to find
Discuss
Answer: (a).p.v of expected dividends
Q40.
In expected rate of return for constant growth, the expected total rate of return is equal to
Discuss
Answer: (b).dividend yield