Chapter 9 Kahoot
Do = $1, expected growth 4% yearly, req rate of return = 10%. How much would you pay for this stock?
$17.33
Do = $1.50, rs = 10.1%, constant growth is g = 4.0%. What is current stock price?
$25.57
Stock sells for $24.50. Dividend constant growth 5.5%. Required rate of return = 9%. Stock's expected price 3 yrs from now?
$28.77
Stock required rate of return = 10.25%, sells for $87.50, dividend constant growth = 6%. What is expected year-end dividend D1?
$3.72
Perpetual preferred stock annual dividend = $2.00. If required rate of return is 6.5%, what price should stock sell for?
$30.77
If D1 = $1.25, g (which is constant) = 4.7%, and Po = $26.00, what is stock's expected dividend yield?
4.81%
If D1 = $1.25, g (constant) = 5.5%, Po = $44, what is stock's expected total return for coming year?
8.34$
The corporate valuation model can be used only when a company doesn't pay dividends
False
If you believe that stock's expected return exceeds its required return, then...
The stock is a good buy
Diversification will normally reduce the riskiness of a portfolio of stocks
True
Risk-averse investor require higher return rates on investments with highly uncertain returns
True
The total rate of return earned on stock is comprised of dividend yield & capital gains yield
True