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These questions please Please answer all of the questions below. Be sure to use models and equations were appropriate to answer your questions. Each Question
These questions please
Please answer all of the questions below. Be sure to use models and equations were appropriate to answer your questions. Each Question is worth 11 points. 1) The objective of the CEO of a firm is: A) Maximize profits B) Maximize market capitalization C) Minimize sales D) None of the above 2)Assuming that the EPS of a company is $7.95, the dividend payout ratio is 50%, and the price of the stock is equal $48.88. What is the expected rate of return on the stock? A) 14.95% B) 12.45% C) 16.26% D) None of the above 3) Which of the following Capital Budgeting methods are consistent under all circumstances? A) Internal Rate of Return (IRR) B) Net Present Value (NPV) C) Profitability Index (PI) D) Allow of the above 4) Determine the price of a stock if the earnings per share in time period one are equal to $45.89, dividend payout ratio is 33%, and the rate of return on equity is 12.69% according o the constant growth model. A) $362 B) $145 C) $236 D) None of the above 5) Assume the returns for Stock A are -10%, 18%, 9%, 12%, 8% over a five year period. Determine the standard deviation of Stock A. A) 14.67% B) 109.75% Step by Step Solution
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