close

Collateral Valuation Concerns

 Equity Value Questions Dissertation

п»їLECTURE 8

STOCK VALUATION SCHOOL QUESTION eight

1 . Gross yield model: If two companies both pay total annual dividends of $1 every share, nevertheless ABC provider's stock is usually trading for $20В while XYZ company's inventory is trading at $40. In which organization would a real estate investor prefer to purchase based on their dividend produce?

2 . In the event the stock market is semi-strong efficient, which in the following statements is correct? a.

All shares should have similar expected earnings; however , they might have different recognized returns. b.

In equilibrium, stocks and bonds needs to have the same anticipated returns. c.

Investors may outperform the market if they have access to data which has not publicly unveiled. d.

If the stock market continues to be performing firmly over the past several months, stock rates are more likely to decline than maximize over the following several months. at the.

None of the above statements is proper.

3. Alpha's preferred inventory currently has a market price equal to $80 per share. In the event the dividend paid out on this share is $6 per share, what is the mandatory rate of return buyers are strenuous from Alpha's preferred stock? a.

several. 5%

m.

13. 3%

c.

6th. 0%

m.

$6. 00

e.

Not one of the above is a correct response.

4. The past dividend upon Spirex Corporation's common share was $4. 00, as well as the expected development rate is usually 10 percent. If you require a price of go back of 20 percent, what is the greatest price you need to be willing to pay with this stock? a.

$44. 00

b.

$38. 50

c.

$40. 00

d.

$45. 69

electronic.

$50. 00

5. A share of common share has a current price of $82. 60 and is anticipated to grow by a constant level of 10 percent. If you demand a 14 percent rate of return, precisely what is the current dividend on this inventory? a.

$3. 00

w.

$3. seventy eight

c.

$4. 29

deb.

$4. seventy five

e.

$6. 13

6. You get the following data:

(1)

The risk-free price is 5 percent.

(2)

The required return on the market is 8 percent.

(3)

The predicted growth rate for the firm can be 4 percent.

(4)

The final...

 Social Coverage Exam Questions Essay

Social Coverage Exam Questions Essay

Kati McDonald 1 ) Explain precisely what is meant by the term ‘vocational' education (2 marks) Professional education refers to education connected to a career. It involves training and…...

Read
 Heroism Research Paper

Heroism Research Paper

Jessica Flaum The english language 3? Heroism When I was little I did previously watch a show called Ellie Possible. It was about a adolescent crime fighter…...

Read