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What information regarding company stocks can be regularly found in the financial pages of newspaper and on-line financial services?

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When companies need new capital, they ca...

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A company has a net income of $238,000, total assets of $1,784,000 and total liabilities of $437,000. The company paid $66,640 in dividends. What is the sustainable growth rate of this firm?


A) 11.69%
B) 14.18%
C) 15.14%
D) 12.73%
E) 18.32%

F) A) and D)
G) All of the above

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A certain stock is expected to pay dividends of $12, $19, $15, and $21 for the next four years. If the required return on the stock is 14 percent, what is the stock price?


A) $47.70
B) $67.00
C) $45.67
D) $49.88
E) $46.67

F) B) and E)
G) B) and C)

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The increase in dividends that can be supported and maintained by a company's earnings is the:


A) capital growth.
B) earnings growth potential.
C) sustainable growth rate.
D) required return.
E) beta.

F) B) and E)
G) A) and B)

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A company currently has sales of $3,400,000, net profit of $268,000 and 400,000 shares of stock outstanding. The sales and net profit each expected to grow by 7.5% annually. The historical price/sales ratio is 8.5, what price would you project for the stock next year?


A) $79.23
B) $72.56
C) $74.02
D) $77.67
E) $76.12

F) A) and D)
G) None of the above

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Valuation of a stock as the present value of future cash flows to be received from that stock is accomplished by:


A) technical analysis.
B) price analysis.
C) dividend discount valuation.
D) fundamental analysis.
E) corporate valuation.

F) A) and B)
G) D) and E)

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