9. Which one of the following is not a reason a firm may decide to repurchase its own stock. (Points : 3)

future corporate needs financial restructuring investment disposition of excess warrants

Question 10.10. The returns investors receive from holding common stocks may be in two forms. They are (Points : 3)

cash dividend payments and capital gains future earnings and treasury stock stock splits and stock dividends cash dividends and stock dividends

Question 11.11. The constant growth dividend valuation model does not hold when (Points : 3)

k_e is greater than g dividends are growing faster than 4 percent g is greater than k_e the current dividend is known

Question 12.12. What is the value of a share of stock of HOV Inc. to an investor who requires a 12 percent rate of return if HOV's current dividend is $1.20? Assume earnings and dividends are expected to grow at a compound annual rate of 7 percent. (Points : 3)

$24.00 $18.34 $25.68 $19.62