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5. Applying the valuation procedure to common stocks is more difficult than applying it to bonds. because a. Unlike the rate of return, or yield, an bonds, the rate of neturn en common sock is noe directly observable, b. The sire and timing of the dividend cash flows are lexs certain than the coupoen payments for bonds c. All of the items listed are true. d. Common stocks have no final maturity date. Answer: 6. Elf Industries just built a better ore trap and everyone agrees they should be able to grow dividends at 3% per year for the foresecable future. If the current price of the company stock is $40 per share and the company just paid a dividend of $2 per share, what misy be the required rate of return expectation in the marketplace? a. 5.15% b. 8.15% c. 8.0% d. 5.0% Answer: 7. The boand of directors for Elf lnc. has just announced it WIL.L. pay a dividend of S325 next year, It is expected that the stock will grow at a rate of 18 percent. If investors require a rate of return of 24 percent, what should be the price of the stock? a. $13.54 b. $15.98 c. $63,92 d. $54.17 Answer: 8. ORC stock is currently priced at $75. The company will pay a dividend of $529 next year and investor require a return of 11.7 percent on similar stocks. What is the dividend growth rate on this stock? a. 4.41% b. 0.17% c. 4.34% d. 4.65% Answer: 5. Applying the valuation procedure to common stocks is more difficult than applying it to bonds. because a. Unlike the rate of return, or yield, an bonds, the rate of neturn en common sock is noe directly observable, b. The sire and timing of the dividend cash flows are lexs certain than the coupoen payments for bonds c. All of the items listed are true. d. Common stocks have no final maturity date. Answer: 6. Elf Industries just built a better ore trap and everyone agrees they should be able to grow dividends at 3% per year for the foresecable future. If the current price of the company stock is $40 per share and the company just paid a dividend of $2 per share, what misy be the required rate of return expectation in the marketplace? a. 5.15% b. 8.15% c. 8.0% d. 5.0% Answer: 7. The boand of directors for Elf lnc. has just announced it WIL.L. pay a dividend of S325 next year, It is expected that the stock will grow at a rate of 18 percent. If investors require a rate of return of 24 percent, what should be the price of the stock? a. $13.54 b. $15.98 c. $63,92 d. $54.17 Answer: 8. ORC stock is currently priced at $75. The company will pay a dividend of $529 next year and investor require a return of 11.7 percent on similar stocks. What is the dividend growth rate on this stock? a. 4.41% b. 0.17% c. 4.34% d. 4.65% Answer: 5. Applying the valuation procedure to common stocks is more difficult than applying it to because a. Unilike the tate of return, or yield, on bonds, the rate of return on common stock directly observable. b. The size and timing of the dividend canth flows are less cerrain thas the coupon paymentr for bonits c. All of the ilems listed are the d, Coumon stocks hove no final maturity date. Answer: 6. Ail Industries just built a belter ore trap and everyone agrees they should be able to gry dividends at 39 per year for the foresecable future. If the current price of the company s $40 per share and the company just paid a dividend of 52 per share, what must be the rea rate of return expectation in the marketplace? a. 5.15% b. 8.15% c. 8.0% d. 5.0% Answer: 7. The board of directors for Elf Ine, has just announced it WIL. pay a dividend of $3 year, It is expected that the stock will grow at a rate of 18 percent. If investors require return of 24 percent, what should be the price of the stock? a. $13.54 b. $15.98 c. $63.92 d. $54.17 Answer: 8. ORC stock is currently priced at $75. The cormpany will pay a dividend of $5.29n investors require a return of 11.7 pereent on similar stocks. What is the dividend gro? this stock? a. 4.41% b. 6.17% c. 4.34% d. 4.65% Answer: 5. Applying the valuation procedure to common stocks is more difficult than applying it to bonds because a. Unlike the rate of return, or yield, an bonds, the rate of return on common sock is not directly observable. b. The size and timing of the dividend carch flows ane less certain than the coupoes payments for bonds. c. All of the items listed are true. d. Common stocks have no final maturity date. Answer: 6. Elf Industries just built a better ore trap and everyone agrees they should be able to grow dividends at 3% per year for the foresecable future. If the current price of the company stock is $40 per share and the company just paid a dividend of $2 per share, what misy be the required rate of return expectation in the marketplace? a. 5.15% b. 8.15% c. 8.0% d. 5.0% Answer: 7. The boand of directors for Elf Inc. has just announced it WIL.L. Pay a dividend of $325 next year. It is expected that the stock will grow at a rate of 18 percent. If investors require a rate of return of 24 percent, what should be the price of the stock? a. $13.54 b. $15.98 c. $63,92 d. 554.17 Answer: 8. ORC stock is currently priced at $75. The compuny will pay a dividend of $529 next year and investor require a return of 11.7 perent on similar stocks. What is the dividend growth rate on this stock? a. 4.41% b. 0.17% c. 4.34% d. 4,65%
