Fin 450 Test 3

A firm has a current EPS of $1.63 and a benchmark PE of 11.7. Earnings are expected to grow 2.6 percent annually. What is the target ......(i couldn't see the last part of this question

$19.57

Which of the following is NOT a characteristic of modern stock exchanges?

Lots of human involvement on the floors of the exchanges

Which of the following types of stock is defined by the fact that it receives no preferential treatment in respect to either dividend proceedings?

Common

Which one of the following types of stock is defined by the fact that it receives no preferential treatment in respect to either dividend or proceedings?

Common

Which of the following will decrease the net present value of a project?

Increasing the project's initial cost at time zero

The stand-alone principle advocates that project analysis should be based solely on which one of the following costs?

Incremental

The difference between a company's future cash flows if it accepts a project and the company's future cash flows if it does not accept is referred to as the project's :

Incremental cash flows

The difference between a company's future cash flows if it accepts a project and the company's future cash flows if it does not accept it is referred to as the project's

Incremental cash flows

If a firm accepts Project A it will not be feasible to also accept Project B because both projects would require the simultaneous same piece of machinery. These projects are considered to be:

Mutually Exclusive

The length of time a firm must wait to recoup the money it has invested in a project is called the:

Payback period

Pro forma financial statements can best be described as financial statements:

Showing projected values for future time periods

You own stock in company ABC and have decided to sell your shares. You place a limit sell order with a limit price of $68. What will happen to your order when it arrives at the exchange?

Your order will not execute and will be placed in the limit order book based on price, time priority

The internal rate of return is defined as the :

discount rate which causes the net present value of a project to equal zero

The annual dividend yield is computed by dividing _________ annual dividend by the current stock price

next year's