Question 213 pts

A bond is considered a fixed income investment instrument because the following elements are fixed.

Group of answer choices

NPER

RATE

PMT

PV

Flag question: Question 22

Question 223 pts

If you do not know the future value of a bond, it is acceptable to assume it is ______________________.

Group of answer choices

10,000

1,000

500

250

Flag question: Question 23

Question 233 pts

As the intermittent payment and future value of and equity security is not fixed, it may be considered a ________________ .

Group of answer choices

variable price security

variable income security

variable value security

fixed income security

Flag question: Question 24

Question 243 pts

Stocks share similar valuation approaches with real estate.

Group of answer choices

True

False

Flag question: Question 25

Question 253 pts

The discounted dividend model is not practical since dividend growth is never constant.

Group of answer choices

True

False

Flag question: Question 26

Question 263 pts

The constant growth model fails when the expected return is larger than the growth rate

Group of answer choices

True

False

Flag question: Question 27

Question 273 pts

Dividends are paid out of earnings, therefore, dividend growth requires earnings growth.

Group of answer choices

True

False

Flag question: Question 28

Question 283 pts

The dividend discount model can be adjusted for periods of fast and slow growth.

Group of answer choices

True

False

Flag question: Question 29

Question 293 pts

Preferred stock is a hybrid security. This means it shares attributes of fixed income securities as well as stocks.

Group of answer choices

True

False

Flag question: Question 30

Question 303 pts

Valuing preferred stock uses the same models as valuing common stock.

Group of answer choices

True

False