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72. A firm has been losing sales due to technological obsolescence. It projects growth for the
future to be -2 percent. Its recent dividend was $2.00. What is the value of this stock when the
required return is 9 percent?
73. A firm has been losing sales due to technological obsolescence. It projects growth for the
future to be -3 percent. Its recent dividend was $2.50. What is the value of this stock when the
required return is 7 percent?
74. To list a stock on the NYSE, a company must meet minimum requirements that include
all of the following EXCEPT:
75. Which of the following is an electronic stock market without a physical trading floor?
76. Individuals who use their own stock inventory and capital to buy and sell the stocks they
represent are called:
77. All of the following are stock market indices EXCEPT:
78. GEN has 10 million shares outstanding and a stock price of $89.25. What is GEN's market
capitalization?
79. GEN has 1 million shares outstanding and a P/E ratio of 12. Its earnings per share is
$2.00. What is GEN's market capitalization?
80. GEN has 3 million shares outstanding and a P/E ratio of 15. Its earnings per share is
$3.00. What is GEN's market capitalization?
81. ABC has a net profit margin of 3.3 percent on Sales of $10,000,000. The firm has 50,000
shares outstanding. If the firm's P/E is 19 times, how much is the stock selling for?
125.40
82. ABC has a net profit margin of 4.3 percent on Sales of $12,000,000. The firm has 250,000
shares outstanding. If the firm's P/E is 16 times, how much is the stock selling for?
83. Which of the following indices best reflects the ten sectors of the economy?
84. Studies of investor psychology have discovered that:
85. Sally has researched GLE and wants to pay no more than $50 for the stock. Currently,
GLE is trading in the market for $54. Sally would be best served to:
86. Which of the following is incorrect with respect to limit orders?
87. Which of the following is incorrect with respect to preferred stock?
88. JUJU's dividend next year is expected to be $1.50. It is trading at $45 and is expected to
grow at 9 percent per year. What is JUJU's dividend yield and capital gain?
89. JUJU's dividend next year is expected to be $5.50. It is trading at $45 and is expected to
grow at 4 percent per year. What is JUJU's dividend yield and capital gain?
90. Value stocks are:
91. A firm does not pay any dividends at this point in time. Which valuation method should be
used on this stock?
92. Which of the following statements is incorrect?
93. A firm is expected to pay a $4.00 dividend per share. The stock is selling in the market
place for $55.00 per share. If investors are demanding 12 percent on this stock, what is this
stock's growth rate?
94. A firm is expected to pay a $2.00 dividend per share. The stock is selling in the market
place for $50.00 per share. If investors are demanding 10 percent on this stock, what is this
stock's growth rate?
95. A firm's recent dividend was $2.00 per share. The stock is selling in the market place for
$50.00 per share. If investors are demanding 10 percent on this stock, what is this stock's growth
rate?
96. A firm's recent dividend was $4.00 per share. The stock is selling in the market place for
$55.00 per share. If investors are demanding 12 percent on this stock, what is this stock's growth
rate?
97. A stock is expected to pay a $1.00 dividend per share. The growth rate is expected to be 4
percent. If investors demand 10 percent on this stock, what is the expected price of the stock 10
years from now?
