FIN_301_Mock_Exam_3 - Pennsylvania State University...

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12/10/2015 Pennsylvania State University – Abington FINANCE 301: Corporation Finance Fall 2015 Mock Exam 3 Please write your first name and surname in BLOCK LETTERS in the space provided : ___________________________________________________________________________ *Note: Formula Sheet is on the last page. 1. True or False. One of the lessons from the capital market history is that the greater the potential reward (return), the greater the risk. A. True B. False 2. Which one of the following correctly describes the dividend yield? A. this year's annual dividend divided by today's stock price B. next year's annual dividend divided by today's stock price C. this year's annual dividend divided by next year's expected stock price D. next year's annual dividend divided by this year's annual dividend 3. Which one of the following categories of securities had the highest average return for the period 1926-2010? 4. Which one of the following categories of securities has had the most volatile returns over the period 1926-2010? 5. Which one of the following is a correct ranking of securities based on their volatility over the period of 1926-2010? Rank from highest to lowest. 1
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12/10/2015 6. One year ago, you purchased a stock at a price of $33.49. The stock pays quarterly dividends of $0.20 per share. Today, the stock is selling for $28.20 per share. What is your capital gain yield on this investment? A. -14% B. -16% C. -18% D. -20%
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  • Fall '07
  • ANDELIN,STEVENLE
  • Finance, annual dividend

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