1. Grogu Corporation missed Wall Street expectations when its earnings per share decreased from $20 to $17. While the company had to lower its dividends from $1.50 to $1.30, its share price decreased from $85 to $75. Given this information, it follows that:

Group of answer choices

The stock P/E ratio increased.

The required rate of return decreased

The company is heading toward bankruptcy

The company lowered its dividend payout ratio

2.

According to the price-to-earnings price multiple, if a company distributes a greater percentage of profit to shareholders, would the companys P/E multiple

Group of answer choices

Not enough information to answer

Increase

Remain the same

Decrease

3.

The constant-growth dividend discount model is most appropriate in valuing:

Group of answer choices

Companies whose revenue growth is similar to the economic growth rate

Mature growth companies that is expected to start distributing dividends

Companies with strong obsolescence risk

None of the above

4.

What index weighting method gives the best stock market breadth information to investors?

Group of answer choices

Equal Weighting

Float-Adjusted Market Capitalization Weighting

Price Weighting

Smart Beta factors