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Part I For a company holding significant net financial assets ( NFA ) , its risk in operation should be its equity risk; and its
Part I
For a company holding significant net financial assets NFA its risk in operation should be its equity risk; and its required rate of return of operation should be its required rate of return of equity.
A the same as the same as
B lower than lower than
C higher than higher than
D the same as higher than
Which one of the following statements is NOT correct?
A Stocks with high and high multiples are always overvalued by the market.
B Dividend Discounted Model can be used to value companies with stable payout policies.
C Share repurchase increases earnings per share, however it does not create more value for the shareholders than dividend.
D Method of comparables can be used to value private companies if a comparable public company can be identified.
If the United States Federal Reserve announces an increase of interest rate, what is the stock market reaction?
a up
b down
c no change
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