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 6 of 14

Q51.
The constant growth rate is 7.2% and an expected rate of return is 12.5% then expected dividend yield will be
Discuss
Answer: (a).0.053
Q52.
An original investment is $30 and an expected capital gain is $10 then an expected final stock price will be
Discuss
Answer: (b).40
Q53.
The constant growth rate is 6.5% and an expected dividend yield is 3.4% then an expected rate of return would be
Discuss
Answer: (a).0.099
Q54.
According to the investors point of view, an expected rate of return is rate on stocks which they
Discuss
Answer: (a).receive in future
Q55.
The second step in calculating value of stock with non-constant growth rate is to find out an
Discuss
Answer: (c).expected price of stock
Q56.
The paid dividend is $20 and the dividend yield is 40% then the current price would be
Discuss
Answer: (c).50
Q57.
The preferred stock dividends must be paid on common stock and must have
Discuss
Answer: (a).fixed amount of dividends
Q58.
The constant growth model would not be used in the condition if growth rate is
Discuss
Answer: (d).greater than realized rate of return
Q59.
The cash flow which is available for all the investors of the company is classified as
Discuss
Answer: (d).free cash flow
Q60.
The present value of dividends which is expected to be provided in future is classified as an
Discuss
Answer: (a).intrinsic value of stock
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