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EXPLAIN PLEASE!!! 7) The P/E ratio of a particular firm would probably be affected by which of the following: A. Investors perception of the quality

EXPLAIN PLEASE!!!

7) The P/E ratio of a particular firm would probably be affected by which of the following:

A. Investors perception of the quality of the firms management

B. The firms accounting practices

C. Supply and demand for the security

D. All of the above

10) Assume D1= $1.80, Ke = 13%, g = 9% using the Constant Growth Dividend Valuation Model, computeP0

A. $4.50

B. $7.50

C. $45.00

D. $64.00

11) Assume D1 = $6.00, Ke = 15% using the Preferred Stock Dividend Valuation Model (the No Growth Model), compute P0

A. $75.00

B. $71.43

C. $44.56

D. $40.00

12) Assume D1 = $3.00, Ke = 10%, and g = 12 % using the Constant Growth Dividend Valuation Model, compute P0

A. The Constant Growth Formula cant be used

B. $150.00

C. $15.00

D. $13.64

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