CHAPTER 8
1.
RISK AND RATES OF RETURN
You have the following data on three stocks:
Stock
A
B
C
Standard Deviation
20%
10%
12%
Beta
0.59
0.61
1.29
If you are a strict risk minimizer, you would choose Stock _ if it is to be held in isolation and Stock
_ if
BUSMGT 732 Assignment 2
Prepare a recommendation to answer the following questions for Mary and John, showing your working
throughout to support your recommendation (Total report length should not exceed 2-3 pages, strictly).
Allow for an introductory par
1.
FINA 361- FINANCE
Examination II Fall 2014
Dr. T. Shawn Strother, CFA
Projects that are calculated as having negative NPVs should be:
A. depreciated over a longer time period.
B. charged less in overhead costs.
C. discounted using lower rates.
D. rejec
FINA 361- FINANCE
Examination II Fall 2014
Dr. T. Shawn Strother, CFA
1.
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 to be paid in one year?
A. $27.78
B. $28.
FINA 361 EXAM 2 SPRING 2015
Dr. T. Shawn Strother, CFA
Name: _
Date: _
1.
Googles expected growth rate for the next year is 11.9%. Earnings are currently (ttm) $20.99 per share. If the
P/E is expected to be 25, what should the stock price be in 1-year?
a.
Dr. T. Shawn Strother
FINA 361 Finance
Spring 2015
EXAMINATION 1
Choose the BEST answer for each question.
1.
A.
B.
C.
D.
Which of the following preferred stock has the highest present value?
$25 annual dividend with an annual discount rate of 8%
$20 annu