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4.) the P/E for the &P 500 is 25. the P/E for the telecom sector is 9, and the P / E for the consumer
4.) the P/E for the &P 500 is 25. the P/E for the telecom sector is 9, and the P / E for the consumer staples sector is 15, which of the following firms appears the most cup NDER ? Assume that the &P 500 and the mentioned sectors are appropriately valued
A.) A telecom firm trading at a P / E of 5
B.) consumer staples trading at a P/E of 15
C.) A consumer staples firm trading at a P / E 25
D.) A telecom firm trading at a P/E of 15
5.) What is the average compounded annual dividend growth rate over the year period from 2016 to 2021 for a firm who paid a dividend 1.70 year 2016 and increased its dividend somewhat steadily to $2.15 by the year 2021
A.) 4.8%
B.)4.1%
C.)5.6%
D.)3.5
6.) Unlike the dividend discount modethe free cash flow discount model does not require the calculation of a discount rate or cost of equity
A.) True
B.) False
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