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1. You are using Bloomberg to look up financial information for Delta Ltd. You determine that the share price is currently $11.00 and that the

1.

You are using Bloomberg to look up financial information for Delta Ltd. You determine that the share price is currently $11.00 and that the value of dividends paid over the past year was $1.63. You paid $8.33 for the share exactly one year ago. What would you expect the dividend yield to be according to Bloomberg?

a. 14.82%

b. 51.62%

c. 19.57%

d. 32.05%

2.

The following table shows the share price, EPS and growth rates for three stocks. Based on PEG ratios, which do you think is the best investment?

Stock Share Price EPS Growth Rate
Richmond Ltd $5.63 $1.11 7%
Collingwood Ltd $6.25 $1.21 6%
Essendon Ltd $5.18 $1.67 5%

a. Essendon's PEG of 58 makes it the most attractive investment.

b. Collingwood's PEG of 86 makes it the most attractive investment.

c. Essendon's PEG of 62 makes it the most attractive investment.

d. Collingwood's PEG of 66 makes it the most attractive investment.

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