Chapter 9 quiz

# Chapter 9 quiz - Chapter 9 quiz Most preferred stock is....

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Chapter 9 quiz Most preferred stock is. .. Student response: Percent Value Correct Response Student Response Answer Choices 0.0% a. cumulative and participating. 100.0% b. cumulative and nonparticipating. 0.0% c. noncumulative and participating. 0.0% d. noncumulative and nonparticipating. Score:1 / 1 Question 2 (1 point) Godfrey Corporation just paid a dividend of \$2.00 a share (that is, D 0 = \$2.00). The dividend is expected to grow 9 percent a year for the next 4 years and then at 4 percent a year thereafter. What is D 6 , the expected dividend per share for Year 6? Student response: Percent Value Correct Response Student Response Answer Choices 0.0% a. \$3.57 0.0% b. \$2.88 0.0% c. \$2.53 100.0% d. \$3.05 0.0% e. \$3.35 Score:1 / 1 Question 3 (1 point) Hamilton Brothers is expected to pay a \$1.00 per share dividend at the end of the year (that is, D 1 = \$1.00). The dividend is expected to grow at a constant rate of 4 percent a year. The required rate of return on the stock, r s , is 10 percent. What is the stock’s value per share? Student response: Percent Value Correct Response Student Response Answer Choices 0.0% a. \$17.33 0.0% b. \$10.40 0.0% c. \$10.00 0.0% d. \$16.03 100.0% e. \$16.67 Score:1 / 1 Question 4 (1 point) Alvarez Industries’ stock currently sells for \$30 a share. It just paid a dividend of \$1.74 a share (that is, D 0 = \$1.74). The dividend is expected to grow at a constant rate of 6.7 percent a year.

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## This note was uploaded on 07/25/2011 for the course FINC 3334 taught by Professor Whitworth during the Winter '10 term at University of Houston.

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Chapter 9 quiz - Chapter 9 quiz Most preferred stock is....

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