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71. Which of the following is true for a firm having a stock price of $42, an expected dividend
of $3, and a sustainable growth rate of 8%?
72. What is the value of the expected dividend per share for a stock that has a required
return of 16%, a price of $45, and a constant-growth rate of 12%?
73. What is the required return for a stock that has a constant-growth rate of 3.3%, a price of
$25, an expected dividend of $2.10, and a P/E ratio of 14.4?
74. What should be the price of a stock that offers a $4.32 annual dividend with no prospects
of growth, and has a required return of 12.5%?
75. Technical analysts are most likely to be successful in a market that is considered to be:
76. If
The Wall Street Journal
lists a stock's dividend as $1, then it is most likely the case that
the stock:
77. Suzi owns 100 shares of AB stock. She expects to receive a $238 in dividends next year.
She also expects the stock to sell for $46 a share one year from now. What is the intrinsic value
of this stock if the dividend payout ratio is 40% and the discount rate is 13.5%?
78. What is the minimum amount shareholders should expect to receive in the event of a
complete corporate liquidation?
79. If the price of a stock falls on 4 consecutive days of trading, then stock prices:
80. What should be the stock value one year from today for a stock that currently sells for
$35, has a required return of 15%, an expected dividend of $2.80, and a constant dividend growth
rate of 7%?
81. The required return on an equity security is comprised of a:
82. What should be the current price of a share of stock if a $5 dividend was just paid, the
stock has a required return of 20%, and a constant dividend growth rate of 6%?
83. What should be the current price of a stock if the expected dividend is $5, the stock has a
required return of 20%, and a constant dividend growth rate of 6%?
84. Reinvesting earnings into a firm will
not
increase the stock price
unless
:
85. What proportion of earnings is being plowed back into the firm if the sustainable growth
rate is 8% and the firm's ROE is 20%?
86. How much of a stock's $30 price is reflected in PVGO if it expects to earn $4 per share,
has an expected dividend of $2.50, and a required return of 20%?
87. What is the expected constant-growth rate of dividends for a stock currently priced at
$50, that just paid a dividend of $4, and has a required return of 18%?
88. According to random-walk theory, what are the odds that a stock will increase in price
after having increased on two consecutive days of trading?
89. If the liquidation value of a corporation exceeds the market value of the equity, then the:
90. In a valuation of a nonconstant dividend growth stock, the terminal value represents the:
91. Which one of the following situations is most likely to occur today for a stock that went
down in price yesterday?
92. Based on the random walk theory, if a stock's price decreased last week, then this week
the price:
93. Research indicates that the correlation coefficient between successive days' stock price
changes is:
94. An analyst who relies on past cycles of stock pricing to make investment decisions is:
95. Janice has spent hours upon hours analyzing the last five years of financial statements of
a firm and has concluded that the firm's stock is currently underpriced. What type of analyst is
Janice?
96. If it proves possible to make abnormal profits based on information regarding past stock
prices, then the market is:
97. The study of published financial information on a company in order to make investment
decisions is known as:
98. A fundamental analyst:
