Business Finance GF 100
Name: Othman El Omari
Final Exam
Multiple Choice Questions (30 points)
1- If a firm experiences a financial loss for the year, the loss is shared equally by the debt
holders and equity holders. B
a- True
b- False
2- If one uses the perpetuity model to value stock, one assumes that P0 = P1 = P3, etc.,
implying that the annual return from owning the stock is zero. B
a- True
b- False.
3- It is never possible to value a stock that has supernormal dividend growth. A
a. True
b. False.
a- True
a- True
a- True
