Question
1. The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased and sold.
1. The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased and sold. *
True False
2. When a new issue of stock is brought to market, it is the marginal investor who determines the price at which the stock will trade. *
True False
3- The breakeven point is where Total Revenues are equal to Total Fixed Cost *
True False
4. The present value of a future sum increases as either the discount rate or the number of periods per year increases, other things held constant. *
True False
5- Intrinsic Value is the estimated/calculated value of an asset to a particular investor. Intrinsic Value can be determined by calculating the present value of the expected cash flows at that investors required rate of return *
True False
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