Which of the following affect current stock price?  
Which of the following affect current stock price?
I. Dividend growth rate
II. Required return
III. Current dividend
IV. Expected dividend next year
Homework Answers
Current stock price = Expected dividend / ( Required rate of return - Growth rate)
Current stock price directly propotional to expected dividend.
Current stock price is inversely propotional to required rate of return and growth rate.
Answers: 1,2,4.
Which of the following affect current stock price? 1. Dividend growth rate II. Required return III. Current dividend...
Which of the following affect current stock price? 1. Dividend growth rate II. Required return III. Current dividend IV. Expected dividend next year Select one: a. I and III only b. ll and IV only c. 1, 11, III and IV d. I, II, and IV only
1) An investor should purchase a stock when A) the market price exceeds the intrinsic value...
1) An investor should purchase a stock when A) the market price exceeds the intrinsic value B) the expected rate of rectum equals or exceeds the required turn C) the capital gains rate is less than the required rumande dividends are paid D) the market price is greater than the justified price Answer 2) Which of the following variables used in determining a stock's intrinsic als can be known with the greatest level of confidence A] future carmings B) expected...
The dividend growth model: I. cannot be used to value zero-growth stocks. II. cannot be used to compute a stock pri...
The dividend growth model: I. cannot be used to value zero-growth stocks. II. cannot be used to compute a stock price at any point in time. III. requires the required return to be higher than the growth rate. IV. assumes that dividends increase by a constant amount forever. V. none of the above is correct Multiple Choice 0 II, and IV only 0 V only 0 1, I, II, and IV only 0 Ill only 0 In order to estimate...
1. Which of the following is (are) feature(s) of preferred stock? I. It generally has a...
1. Which of the following is (are) feature(s) of preferred stock? I. It generally has a fixed dividend. II. It generally has a dividend that increases annually. III. It receives preference in bankruptcy over common stock. IV. It receives preference in bankruptcy over secured bond holders. a) II and IV only b) I and III only c) I only d) II and III only e) I and IV only 2. A System pays a constant annual dividend. Over the past...
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1....
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1. One simple method of estimating the dividend growth rate is to analyze the historical paltem of dividends II. The expected total return equals the return from capital gains plus the return from dividends TIL. The model is applicable to growth firms with initially high growth rates. IV. The intrinsic value calculated using this method can change from one investor to another if their risk-return...
18) Which of the following are key inputs to determining the current value of an asset?...
18) Which of the following are key inputs to determining the current value of an asset? I. the required rate of return II. future cash flows III. current stock price IV. timing of future cash flows A) I and III only B) II, III and IV only C) I and II only D) I, II and IV only
1. Mark owns a stock with a market price of $53 per share. This stock pays...
1. Mark owns a stock with a market price of $53 per share. This stock pays a constant annual dividend of $1.64 a share. If the price of the stock suddenly falls to $41 a share, you would expect the: I. dividend yield to increase. II. dividend yield to decrease. III. growth rate to increase. IV. growth rate to decrease. a) II only b) I and III only c) II and IV only d) III only e) I only 2....
Current stock price
Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rateof 6% forever. If the firm's required return (rs) is 11%, what is its current stock price?
1. Which of the following variables does NOT affect the value of a stock option? The...
1. Which of the following variables does NOT affect the value of a stock option? The predicted future price of the underlying stock The current price of the underlying stock The option’s time to maturity The option’s strike price The interest rate 2. Zack owns a bond that will pay him $35 each year in interest plus a $1,000 principal payment at maturity. The $1,000 principal payment is called the coupon. par value. discount. yield. call premium. None of the...
if the current price of common stock is $55 per share in current dividends that was...
if the current price of common stock is $55 per share in current dividends that was just paid was $2.20 per share, what is the required rate of return on the stock if the growth rate and dividend is expected to be 7% per year?
Which of the following affect current stock price? 1. Dividend growth rate II. Required return III. Current dividend IV. Expected dividend next year Select one: a. I and III only b. ll and IV only c. 1, 11, III and IV d. I, II, and IV only
1) An investor should purchase a stock when A) the market price exceeds the intrinsic value B) the expected rate of rectum equals or exceeds the required turn C) the capital gains rate is less than the required rumande dividends are paid D) the market price is greater than the justified price Answer 2) Which of the following variables used in determining a stock's intrinsic als can be known with the greatest level of confidence A] future carmings B) expected...
The dividend growth model: I. cannot be used to value zero-growth stocks. II. cannot be used to compute a stock price at any point in time. III. requires the required return to be higher than the growth rate. IV. assumes that dividends increase by a constant amount forever. V. none of the above is correct Multiple Choice 0 II, and IV only 0 V only 0 1, I, II, and IV only 0 Ill only 0 In order to estimate...
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1. One simple method of estimating the dividend growth rate is to analyze the historical paltem of dividends II. The expected total return equals the return from capital gains plus the return from dividends TIL. The model is applicable to growth firms with initially high growth rates. IV. The intrinsic value calculated using this method can change from one investor to another if their risk-return...
18) Which of the following are key inputs to determining the current value of an asset? I. the required rate of return II. future cash flows III. current stock price IV. timing of future cash flows A) I and III only B) II, III and IV only C) I and II only D) I, II and IV only
Most questions answered within 3 hours.
-
kmalloc()
Can be used by regular processes as a faster, lower-level
version of malloc
Allocates memory...
asked 5 minutes ago -
Suppose a distant world with surface gravity of 6.88 m/s2 has an
atmospheric pressure of 8.12...
asked 6 minutes ago -
A mixture contains 5.432 g of
sand and 2.521 g of salt. What is the percentage...
asked 12 minutes ago -
A 8.62 -m ladder with a mass of 21.1 kg lies flat on the ground.
A...
asked 11 minutes ago -
What problem would arise from this vanadium-based treatment over
the course of a lifetime in diabetes
asked 10 minutes ago -
Homework: Create a Class.... from scratch
Design , implement and test a class that can be...
asked 25 minutes ago -
A project has a service life of five years with the initial
investment outlay of $200,000....
asked 22 minutes ago -
Employee develop involves longer term training and opportunities
that while not immediately needed on a current...
asked 21 minutes ago -
Why is the reticulum the affected compartment of the
stomach?
Group of answer choices
It has...
asked 24 minutes ago -
(Print distinct numbers) C++
Write a program that reads in 10 numbers and displays distinct
numbers...
asked 24 minutes ago -
A 3.0275 g sample of KHP (a primary standard, 1:1 acid:base,
FM=204.23 g/mol) is titrated with...
asked 30 minutes ago -
1. You need to make an aqueous solution of
0.165 M barium acetate for an
experiment...
asked 30 minutes ago