The constant perpetual growth model is applicable

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Chapter 16 / Exercise 2a
Exploring Macroeconomics
Sexton
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21)The constant perpetual growth model is applicable primarily to those firms which: a)adhere to a residual dividend policy. b)pay dividends that increase at a steady rate. c)have irregular dividend growth rates. d)maintain a constant dividend payout ratio. e)have multiple rates of dividend growth.
22)Which one of the following is a municipal bond that is secured by the income collected from a specific project?
23)DT Industries stock is valued at $9.60 a share. The firm pays annual dividends at an increasing rate of 2 percent annually. Next year's dividend will be $1.20 per share. What is the required return on this stock?
24)Which of the following risks do debt ratings specifically measure?
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The document you are viewing contains questions related to this textbook.
Exploring Macroeconomics
The document you are viewing contains questions related to this textbook.
Chapter 16 / Exercise 2a
Exploring Macroeconomics
Sexton
Expert Verified
525)Which one of the following states that investors cannot consistently earn positive excess returns? a)market return hypothesis b)current market hypothesis c)efficient market hypothesis d)risk-return theory e)excess theory
26)Which one of the following terms is defined as debt issued without specific collateral pledged as security?
27)Assume that a large corporation, such as General Electric, needs money in the short-term. Which one of the following securities is that corporation most likely to issue to meet this need?
28)A $5,000 face value bond is quoted at a bank discount yield of 2.8 percent. What is the current value of the bond if it matures in 36 days?
29)A premium bond is defined as a bond that: a)has a duration that is less than 1.0. b)has a face value that exceeds its market value. c)is callable at a price which exceeds the face value. d)has a market price that exceeds par value. e)is selling for less than face value.
30)Which of the following is a legal contract that outlines the precise terms between the issuer and the bondholder?

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