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Homework9_Questions - Homework9 Student: _ 1. _ is equal to...

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Homework9Student:___________________________________________________________________________1._________ is equal to (common shareholders' equity/common shares outstanding).A. Book value per shareB. Liquidation value per shareC. Market value per shareD. Tobin's Q
2._______ is the amount of money per common share that could be realized by breaking up the firm,selling the assets, repaying the debt, and distributing the remainder to shareholders.
3.Historically, P/E ratios have tended to be
4.The ______ is a common term for the market consensus value of the required return on a stock.
5.You wish to earn a return of 11% on each of two stocks, C and D. Stock C is expected to pay a dividendof $3 in the upcoming year while stock D is expected to pay a dividend of $4 in the upcoming year. Theexpected growth rate of dividends for both stocks is 7%. The intrinsic value of stock CA. will be greater than the intrinsic value of stock D.B. will be the same as the intrinsic value of stock D.C. will be less than the intrinsic value of stock D.D. will be the same or greater than the intrinsic value of stock D.E. None of the options.
6.If the expectedROEon reinvested earnings is equal tok, the multistageDDMreduces to....
7.Music Doctors Company has an expectedROEof 14%. The dividend growth rate will be ________ if thefirm follows a policy of paying 60% of earnings in the form of dividends.

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Term
Spring
Professor
EYang
Tags
Economics, Dividend yield, P E ratio

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