Question
Please answer the following True or False questions. Part 1. Ture or False Questions Ture or False 1 When stocks are issued, the value of
Please answer the following True or False questions.
Part 1. Ture or False Questions
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| Ture or False |
| 1 | When stocks are issued, the value of the stocks at that time will be reported in the Liability portion on the right side of the issuers balance sheet. |
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| 2 | The value of anything is the present value of all future expected cash flows. |
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| 3 | Because a stockholder is entitled a share of earnings of the company, the dividend payments are legally obligated. |
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| 4 | The difference between the selling price and the purchase price is one source of cash flows from our stock investment. |
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| 5 | Sometimes we find stocks with prices that are currently high and, therefore, we expect them to go lower in the future. To profit from this, we can short the stock with low risk. |
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| 6 | Preferred stocks have a stated dividend that remains constant forever. |
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| 7 | A stock that pays that is valued at $97 must have a higher dividend than a stock that is valued at $7. |
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| 8 | A stock with a P/E of 20 and a PEG of 0.8 is likely to have a higher growth rate than a stock with a P/E of 15 and a PEG of 0.6. |
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Technology And Finance Challenges For Financial Markets Business Strategies And Policy Makers
Authors: Morten Balling, Frank Lierman, Andy Mullineux
1st Edition
041529827X, 978-0415298278
