7 If a company has a 20% Return on Equity and a 25% dividend payout policy, what is its growth rate using the reinvestment rate method used in the book? O 20% 25% 5% 15% QUESTION 8 What is often needed to move a cheap stock to its intrinsic value? Insider trading A stock market crash A structural catalyst A strong economy QUESTION 9 What is NOT an item found in a 10K/ Annual Report? Total shares repurchased in the past year Earnings per share projections for the next year An analysis of the effective tax rate Biggest legal exposures QUESTION 10 What best describes Goodhart's law? all insider selling indicates that a stock is overvalued OA metric that is focused on ceases to be a valuable metric O acquiring companies always get a bump in stock price after closing a deal Orising accounts payables as a percent of sales is always a warning of credit problems QUESTION 11 Which is NOT (or least) a red flag for potential earnings or accounting problems? Concealment of inventory problems A change to a more aggressive revenue recognition policy Cutting necessary but discretionary spending Deciding to expense rather than capitalize more research expenses QUESTION 12 Under Sarbanes Oxley, who is required to sign 10Qs and 10Ks? All Board Members Both the CEO and the CFO (Chief Executive Officer and Chief Financial Officer) Just the CFO (Cheif Financial Officer) The Chair of the Board