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Page 3 - 13 What is the value of the expected dividend per...

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Unformatted text preview: 13. What is the value of the expected dividend per share for a stock that has a required return of 16%, a price of $45, and a constant growth rate of 12%? A. $1.80 B. $3.60 C. $4.50 D. $7.20 14. Which of the following best charactetim the djfi'erence between growth stocks and income stocks? A. Growth stocks do not pay dividends. B. Income stocks offer higher rates of return. C. Income Stocks are seasoned issues. - .. - . 7D. Growth stocks haire greater PVGO. ‘ 15. An example that specifically contradicts strong-form market efficiency in US. stock markets is that: A. excess profits are observed in cases of insider trading. B. stock prices follow predictable patterns in each month. C. the reliability of random walk behavior. D. fundamental analysts outperform the S&P 500. 16. What price would you expect to pay for a stock with 13% required rate of return, 4% rate of dividend growth, and an annual dividend of $2.50 which will be paid next year? A. $27.78 B. $30.28 C. $31.10 ‘ 'y DT$3113’9"*” ’ ' ' ’ ’ "m " A" "" ’ ' ’ " ' —"""" ""' “""""’H~i* 17. One method that can be used to increase the NPV of a project is to decrease the: fig project's payback. B. project's cost of capital. C. time untii receipt of cash inflows. D. number of proj ect lRRs. 18. What is the IRR of a project that costs $100,000 and provider. cash inflows of 51 7.000 annually for six years? A. 0.57% B. 2.00% C. 5.69% D. 56.87% 19. What is the NPV for the following project cash flows at a discount rate of 15%? CFO = ($1,000), CFl = $700, CF2 = $700. A. ($308.70) B. ($138.00) I C. $138.00 D. $308.70 ...
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