Share Valuation MCQs
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1. Shares and bonds are float in ……………?
2. The dividend discount model?
3. Stock that have priority of claim on assets?
4. The dividend growth rate is referred to as the?
5. Who determine the market price of a share of common stock?
6. The firm of Sun and Moon purchased a share of ABC.com common stock exactly one year ago for Rs. 45. During the past year the common stock paid an annual dividend of Rs. 2.40. The firm sold the security today for Rs. 85. What is the rate of return the firm has earned?
7. A preferred stock will pay a dividend of Rs. 3.00 in the upcoming year, and every year thereafter, for three year. You require a return of 9% on this stock. Use the constant growth model to calculate the intrinsic value of this preferred stock?
8. What is difference between shares and bonds?
9. The ______ is defined as the present value of all cash proceeds to the investor in the stock?
10. You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of Rs. 3 in the upcoming year while Stock Y is expected to pay a dividend of Rs. 4 in the upcoming year. The expected growth rate of dividends for both stocks is 7%. The intrinsic value of stock X?
Financial Management: Theory and Practice, Dr Eugene F Brigham & C Micheal Ehrhardt
Fundamentals of Financial Management: Concise Edition, Brigham Houston
The Economist Guide to Financial Management, John Tennet
Financial Management: Core Concepts, Raymond M Brooks