Question
Which of the following investors is best suited to an investment objective that is mainly focused on generating capital gains? A well-paid young executive with
Which of the following investors is best suited to an investment objective that is mainly focused on generating capital gains?
A well-paid young executive with excess income and preparing for retirement | ||
A retired couple whose pension income is insufficient to provide for their regular living expenses | ||
A young couple investing their savings for the eventual purchase of a home | ||
A salaried person who relies on investment income to meet the costs of raising and educating her children |
What is the main difference between a "Fund Facts" document and an "ETF Facts" document?
Fund Facts document must provide information about the risks of mutual funds | ||
ETF Facts document must provide information about the ETF front-end and back-end loads | ||
ETF Facts document must provide information about trading and pricing features | ||
Fund Facts document must provide information about why mutual funds trade at a discount to net asset value (NAV) |
Coca-Cola is currently trading on the New York Stock Exchange at $43 per share and the dividend the company paid out last year was $1.32 per share. According to the Dividend Discount Model, if Coca Cola's dividends are expected to grow at 6% (compounded annually) and a potential buyer of the shares wants to earn a 10% rate of return (compounded annually), then what is the fair market value of the shares?
$43.00 | ||
$43.89 | ||
$34.98 | ||
$44.32 |
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