Question
The exchange-traded fund (ETF) that tracks the Nasdaq 100 index is called: SPDR. DIAMONDS. QQQQ. NDAQQ. Universal Air is a no-growth firm and has two
The exchange-traded fund (ETF) that tracks the Nasdaq 100 index is called:
SPDR.
DIAMONDS.
QQQQ.
NDAQQ.
Universal Air is a no-growth firm and has two million shares outstanding. It expects to earn a constant $20 million per year on its assets. If it has no debt, all earnings are paid out as dividends, and the cost of capital is 10%, calculate the current price per share of the stock.
$200
$150
$100
$50
The constant dividend growth formula P0 = Div1/(r - g) assumes: I) that dividends grow at a constant rate g, forever; II) r > g; III) g is never negative
Generally high growth stocks pay:
low or no dividends.
high, steadily growing dividends.
erratic dividends.
decreasing dividends.
Most of the trading on the NYSE is in ordinary common stocks.
True
False
The return that is expected by investors from a common stock is also called its market capitalization rate, or cost of equity capital.
True
False
I only
II only
I and II only
III only
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