1-What should be the price of a stock that offers a 4.32 annual dividend with no prospects of growth, and has a required return of 12.5%?

0

4.86

33.56

30.24

None of above

2-What is the minimum amount shareholders should expect to receive in the event of a complete corporate liquidation?

Zero

Market value of equity

Book value of equity

Shareholders may be required to pay to liquidated

None of above

3-If the price of a stock falls on 4 consecutive days of trading, then stock prices:

Cannot be following a random walk

Can still be following a random walk

Are almost certain to decrease the following day

Can still be following a random walk

None of above

4-The required return on an equity is comprised of a:

Dividend yield and ROE

Current yield and a terminal value

Dividend yield and a capital gain yield

Sustainable growth rate and a plow back ratio

None of above