1、最新 料推荐1. What is the name given to the model that computes the present value of a stock by dividing next years annual dividend amount by the difference between the discount rate and the rate of change in the annual dividend amount?A. Stock pricing model B. Equity pricing model C. Capital gain modelD
2、. Dividend growth modelE. Present value modelRefer to section 7.1.Blooms: KnowledgeDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth model2. The dividend yield is defined as:A. the current annual cash
3、dividend divided by the current market price per share.B. the current annual cash dividend divided by the current book value per share.C. next years expected cash dividend divided by the current market price per share.D. next years expected cash dividend divided by the current book value per share.E
4、. next years expected cash dividend divided by next years expected market price per share.Refer to section 7.1.Blooms: KnowledgeDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividendgrowth.Section: 7.1Topic: Dividend yield1最新 料推荐3. The capital gain
5、s yield equals which one of the following? A. Total yieldB. Current discount rate C. Market rate of return D. Dividend yieldE. Dividend growth rateRefer to section 7.1.Blooms: KnowledgeDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.S
6、ection: 7.1Topic: Capital gains yield2最新 料推荐4. Which one of the following types of securities has no priority in a bankruptcy proceeding? A. Convertible bondB. Senior debtC. Common stockD. Preferred stockE. Straight bond24. Which one of the following will increase the current value of a stock? A. De
7、crease in the dividend growth rateB. Increase in the required returnC. Increase in the market rate of returnD. Decrease in the expected dividend for next year E. Increase in the capital gains yieldReview section 7.1.Blooms: ComprehensionDifficulty: IntermediateLearning Objective: 07-01 Assess how st
8、ock prices depend on future dividends and dividend growth.Section: 7.1Topic: Stock valuation3最新 料推荐25. The price of a stock at year 4 can be expressed as:A. D 0 / (R + G 4).B. D0(1 + R) 5.C. D1(1 + R) 5.D. D 4/(R-g).E. D5 /(R-g).Refer to section 7.1.Blooms: KnowledgeDifficulty: BasicLearning Objecti
9、ve: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth model26. Delfinos expects to pay an annual dividend of $1.50 per share next year. What is theanticipated dividend for year 5 if the firm increases its dividend by 2 percent annually? A
10、. $1.50 (1.02) 1B. $1.50(1.02) 2C. $1.50(1.02) 3D. $1.50(1.02) 4E. $1.50(1.02) 5Refer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividendgrowth.Section: 7.1Topic: Dividend growth4最新 料推荐27. The required return
11、on a stock is equal to which one of the following if the dividend on the stock decreases by 1 percent per year?A. (P0/D 1)-g B. (D 1/P0)/gC. Dividend yield + capital gains yield D. Dividend yield - capital gains yieldE. Dividend yieldcapital gains yieldRefer to section 7.1.Blooms: ComprehensionDiffi
12、culty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Required return28. Donuts Delite just paid an annual dividend of $1.10 a share. The firm expects to increase this dividend by 8 percent per year the following 3 years and t
13、hen decrease the dividend growth to 2 percent annually thereafter. Which one of the following is the correct computation of the dividend for year 7?A. ($1.10) (1.083) (1.024)B. ($1.10) (1.083) (1.023)C. ($1.10) (1.08) 3 (1.02) 4D. ($1.10) (1.08) 3 (1.02) 3E. ($1.10) (1.08) 3 (1.02) 2Refer to section
14、 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth5最新 料推荐29. Aardvark, Inc. pays a constant annual dividend. At the end of trading on Wednesday, the price of its stock was $28.
15、 At the end of trading on the following day, the stock price was $27. As a result of the decline in the stocks price, the dividend yield _ while the capital gains yield_.A. remained constant; remained constant B. increased; remained constantC. increased; increasedD. decreased; remained constantE. de
16、creased; decreasedRefer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend and capital gain yield30. Which one of the following must equal zero if a firm pays a constant ann
17、ual dividend? A. Dividend yieldB. Capital gains yield C. Total returnD. Market value per share E. Book value per shareRefer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Capital
18、 gains yield6最新 料推荐31. The dividend growth model can be used to value the stock of firms which pay which type of dividends?I. constant annual dividendII. annual dividend with a constant increasing rate of growth III. annual dividend with a constant decreasing rate of growth IV. zero dividendA. I onl
19、yB. II onlyC. II and III onlyD. I, II, and III onlyE. I, II, III, and IVRefer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth model7最新 料推荐32. Kate owns a stock wit
20、h a market price of $31 per share. This stock pays a constant annualdividend of $0.60 per share. If the price of the stock suddenly increases to $36 a share, you would expect the:I. dividend yield to increase.II. dividend yield to decrease.III. capital gains yield to increase.IV. capital gains yield
21、 to decrease. A. I onlyB. II only C. III onlyD. I and III only E. II and IV onlyRefer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend and capital gain yield8最新 料推荐33. Com
22、puting the present value of a growing perpetuity is most similar to computing the current value of which one of the following?A. Non-dividend-paying stockB. Stock with a constant dividend C. Stock with irregular dividendsD. Stock with a constant growth dividendE. Stock with growing dividends for a l
23、imited period of timeRefer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Growing perpetuity9最新 料推荐34. Jensen Shipping has four open seats on its board of directors. How many sha
24、res will a shareholder need to control to ensure that his or her candidate is elected to the board given the fact that the firm uses straight voting? Assume one share equals one vote.A. 20 percent of the shares plus one voteB. 25 percent of the shares plus one voteC. 1/3 of the shares plus one voteD
25、. 50 percent of the shares plus one voteE. 51 percent of the shares plus one vote51. Keller Metals common stock is selling for $36 a share and has a dividend yield of 3.2 percent. What is the dividend amount?A. $0.32 B. $1.15 C. $3.49D. $11.25E. $11.52Dividend = 0.032$36 = $1.15AACSB: AnalyticBlooms
26、: AnalysisDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend amount10最新 料推荐52. The Glass Ceiling paid an annual dividend of $2.20 per share last year. Management just announced that future dividends will incre
27、ase by 2.8 percent annually. What is the amount of the expected dividend in year 5?A. $2.39B. $2.41C. $2.46D. $2.53E. $2.58D5 = $2.20(1.028) 5 = $2.53AACSB: AnalyticBlooms: AnalysisDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividendgrowth.Sectio
28、n: 7.1Topic: Dividend amount11最新 料推荐53. The Pancake House pays a constant annual dividend of $1.25 per share. How much are you willing to pay for one share if you require a 15 percent rate of return?A. $7.86 B. $8.33 C. $10.87 D. $11.04 E. $11.38P = $1.25/0.15 = $8.33AACSB: AnalyticBlooms: AnalysisD
29、ifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Constant dividend54. Shoreline Foods pays a constant annual dividend of $1.60 a share and currently sells for $28.50 a share. What is the rate of return?A. 4.56 percent
30、 B. 5.39 percent C. 5.61 percent D. 6.63 percent E. 6.91 percentR = $1.60/$28.50 = 5.61 percentAACSB: AnalyticBlooms: AnalysisDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Constant dividend12最新 料推荐55. The common s
31、tock of Green Garden Flowers is selling for $24 a share. The company pays a constant annual dividend and has a total return of 3.8 percent. What is the amount of the dividend?A. $0.38 B. $0.76 C. $0.91D. $1.38E. $1.54D = 0.038$24 = $0.91AACSB: AnalyticBlooms: AnalysisDifficulty: BasicLearning Object
32、ive: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Total return56. Healthy Foods just paid its annual dividend of $1.45 a share. The firm recently announced that all future dividends will be increased by 2.8 percent annually. What is one share of thi
33、s stock worth to you if you require a 14 percent rate of return?A. $12.56 B. $12.95 C. $13.31 D. $13.68 E. $14.07P0 = ($1.451.028)/(0.14 - 0.028) = $13.31AACSB: AnalyticBlooms: AnalysisDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.S
34、ection: 7.1Topic: Dividend growth model13最新 料推荐57. Plastics, Inc. will pay an annual dividend of $1.85 next year. The company just announced that future dividends will be increasing by 2.25 percent annually. How much are you willing to pay for one share of this stock if you require a 16 percent retu
35、rn?A. $13.45 B. $13.61 C. $13.76D. $14.02E. $14.45P0 = $1.85/(0.16 - 0.0225) = $13.45AACSB: AnalyticBlooms: AnalysisDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth model58. The Printing Company stock
36、 is selling for $32.60 a share based on a 14 percent rate of return. What is the amount of the next annual dividend if the dividends are increasing by 2.5 percent annually?A. $3.48 B. $3.52 C. $3.57 D. $3.66 E. $3.75$32.60(0.14 - 0.025) = $3.75AACSB: AnalyticBlooms: AnalysisDifficulty: BasicLearning
37、 Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth model14最新 料推荐59. The common stock of Mid-Towne Movers is selling for $33 a share and has a 9 percent rate of return. The growth rate of the dividends is 1 percent annually. Wha
38、t is the amount of the next annual dividend?A. $2.58 B. $2.61 C. $2.64D. $2.67E. $2.70$33(0.09 - 0.01) = $2.64AACSB: AnalyticBlooms: AnalysisDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth model60. Delphins Marina is expected to pay an annual dividend of $0.58 next year. The stock is selling for $8.53 a share and has a total return of 12 percent. What is the dividend growth rate?A. 3.82 percent B. 4.03 percent C. 4.28 p
