Course Hero Logo

B because the cash flows resulng from owning a stock

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 72 - 75 out of 137 pages.

b.Because the cash flows resul±ng from owning a stock are typically more risky than the cash flows resul±ng from owning abond.c.Because stocks typically pay higher payments than bonds.d.Because companies usually use more equity than debt.The correct answer is:Because the cash flows resul±ng from owning a stock are typically more risky than the cash flows resul±ngfrom owning a bond.GEN has 10 million shares outstanding and a stock price of $89.25. What is GEN's market capitalization?Select one:a. $89,250,000b. $89,250,000,000c. $892,500d. $892,500,000The correct answer is: $892,500,000
2/12/2020Quiz 8 Chapter 8 Part 1 - Requires Respondus LockDown Browser2/3Question4Correct1.00 points outof 1.00Question5Correct1.00 points outof 1.00Question6Correct1.00 points outof 1.00Question7Correct1.00 points outof 1.00All of the following are stock market indices except _________________.Select one:a. Standard & Poor's 500 Indexb. Nasdaq Composite Indexc. Dow Jones Industrial Averaged. Mercantile 1000The correct answer is: Mercantile 1000As residual claimants, these investors claim any cash flows to the firm that remain after the firm pays all other claims.Select one:a. preferred stockholdersb. common stockholdersc. bondholdersd. creditorsThe correct answer is: common stockholdersStock valua±on model dynamics make clear that higher dividend growth rates lead toSelect one:a.lower valua±ons.b.higher valua±ons.c.lower discount rates.d.higher discount rates.The correct answer is:higher valua±ons.If the management team of a company decides to increase the dividend payment for the current yearSelect one:a.The stock price should decline because the present value will be lowerb.The stock price should rise because the present value will be higherc.The stock price should not be impacted because nothing fundamental about the company has been changed, and as there willbe less funds generated to pay out future dividends.d.The discount rate will change because it will change the risk of the cash flows.The correct answer is:The stock price should not be impacted because nothing fundamental about the company has been changed,and as there will be less funds generated to pay out future dividends.
2/12/2020Quiz 8 Chapter 8 Part 1 - Requires Respondus LockDown Browser3/3Question8Correct1.00 points outof 1.00Question9Correct1.00 points outof 1.00Question10Correct1.00 points outof 1.00We can estimate a stock's value by:Select one:a. discounting the future dividends and future stock price appreciation.b. compounding the past dividends and past stock price appreciation.c. using the book value of the total stockholder equity section.d. using the book value of the total assets divided by the number of shares outstanding.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 137 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
N/A
Tags
Correct Answer

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture