Question 10
5 out of 5 points
The constant growth dividend model will provide invalid solutions when
Selected Answer:the growth rate (g) is greater than the required return (r).Answers:the growth rate (g) is greater than the

required return (r).the growth rate (g) is less than the required return(r).the growth rate (g) is less than 10 percent.the required rate of return (r) is greater than50 percent.
Question 11
5 out of 5 points
Which of the following is not a widely known stock market index?
Question 12
5 out of 5 points
Which of the following statements is true?
Question 13
5 out of 5 points
Match the description to the formula

Question
Correct
Match
Selected
Match
General dividend valuation model
e.
e.
Zero growth dividend model
b.
b.
Value of a dividend at time
t
with constant growth
f.
f.
Constant growth dividend model
d.
d.
Value of a stock at time
t
when dividends grow at a
constant rate
a.
a.
Mixed (supernormal) growth dividend model
g.
g.
Value of preferred stock with a fixed maturity
c.
c.
All Answer
Choices
a.
b.
c.
d.

Question 1410 out of 10 pointsZephyr Electricals is a company with no growth. The last dividend was $4.50 and it expects no change in future dividends. What is the current price of the company's stock if the required rate of return is 9 percent?
Question 1510 out of 10 pointsJohnson Corporation JUST PAID a dividend of $4.45. The expected growth rate on dividends is 8 percent. What is the current price of this stock if the required rate of return is 14 percent?
Question 1610 out of 10 pointsAjax Company has issued perpetual preferred stock with an annual dividend of $5.50. What is the value of this preferred stock if the required rate of return is 8 percent?



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