公司理财期末789选择题.doc

1、1. What is the name given to the model that computes the present value of a stock by dividing next years annual dividend amount by the difference between the discount rate and the rate of change in the annual dividend amount? A. Stock pricing modelB. Equity pricing modelC. Capital gain modelD. Divid

2、end growth modelE. Present value modelRefer to section 7.1.Blooms: KnowledgeDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth model2. The dividend yield is defined as: A. the current annual cash divide

3、nd divided by the current market price per share.B. the current annual cash dividend divided by the current book value per share.C. next years expected cash dividend divided by the current market price per share.D. next years expected cash dividend divided by the current book value per share.E. next

4、 years expected cash dividend divided by next years expected market price per share.Refer to section 7.1.Blooms: KnowledgeDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend yield3. The capital gains yield equa

5、ls which one of the following? A. Total yieldB. Current discount rateC. Market rate of returnD. Dividend yieldE. Dividend growth rateRefer to section 7.1.Blooms: KnowledgeDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Top

6、ic: Capital gains yield4. Which one of the following types of securities has no priority in a bankruptcy proceeding? A. Convertible bondB. Senior debtC. Common stockD. Preferred stockE. Straight bond24. Which one of the following will increase the current value of a stock? A. Decrease in the dividen

7、d growth rateB. Increase in the required returnC. Increase in the market rate of returnD. Decrease in the expected dividend for next yearE. Increase in the capital gains yieldReview section 7.1.Blooms: ComprehensionDifficulty: IntermediateLearning Objective: 07-01 Assess how stock prices depend on f

8、uture dividends and dividend growth.Section: 7.1Topic: Stock valuation25. The price of a stock at year 4 can be expressed as: A. D0 / (R + G4).B. D0 (1 + R)5.C. D1 (1 + R)5.D. D4/(R-g).E. D5/(R-g).Refer to section 7.1.Blooms: KnowledgeDifficulty: BasicLearning Objective: 07-01 Assess how stock price

9、s depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth model26. Delfinos expects to pay an annual dividend of $1.50 per share next year. What is the anticipated dividend for year 5 if the firm increases its dividend by 2 percent annually? A. $1.50 (1.02)1B. $1.50 (1.02)2

10、C. $1.50 (1.02)3D. $1.50 (1.02)4E. $1.50 (1.02)5Refer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth27. The required return on a stock is equal to which one of th

11、e following if the dividend on the stock decreases by 1 percent per year? A. (P0/D1)-gB. (D1/P0)/gC. Dividend yield + capital gains yieldD. Dividend yield - capital gains yieldE. Dividend yield capital gains yieldRefer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 As

12、sess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Required return28. Donuts Delite just paid an annual dividend of $1.10 a share. The firm expects to increase this dividend by 8 percent per year the following 3 years and then decrease the dividend growth to 2 pe

13、rcent annually thereafter. Which one of the following is the correct computation of the dividend for year 7? A. ($1.10) (1.08 3) (1.02 4)B. ($1.10) (1.08 3) (1.02 3)C. ($1.10) (1.08)3 (1.02)4D. ($1.10) (1.08)3 (1.02)3E. ($1.10) (1.08)3 (1.02)2Refer to section 7.1.Blooms: ComprehensionDifficulty: Bas

14、icLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth29. Aardvark, Inc. pays a constant annual dividend. At the end of trading on Wednesday, the price of its stock was $28. At the end of trading on the following day, the

15、 stock price was $27. As a result of the decline in the stocks price, the dividend yield _ while the capital gains yield _. A. remained constant; remained constantB. increased; remained constantC. increased; increasedD. decreased; remained constantE. decreased; decreasedRefer to section 7.1.Blooms:

16、ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend and capital gain yield30. Which one of the following must equal zero if a firm pays a constant annual dividend? A. Dividend yieldB. Capital gains

17、 yieldC. Total returnD. Market value per shareE. Book value per shareRefer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Capital gains yield31. The dividend growth model can be

18、used to value the stock of firms which pay which type of dividends? I. constant annual dividendII. annual dividend with a constant increasing rate of growthIII. annual dividend with a constant decreasing rate of growthIV. zero dividend A. I onlyB. II onlyC. II and III onlyD. I, II, and III onlyE. I,

19、 II, III, and IVRefer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth model32. Kate owns a stock with a market price of $31 per share. This stock pays a constant a

20、nnual dividend of $0.60 per share. If the price of the stock suddenly increases to $36 a share, you would expect the: I. dividend yield to increase.II. dividend yield to decrease.III. capital gains yield to increase.IV. capital gains yield to decrease. A. I onlyB. II onlyC. III onlyD. I and III only

21、E. II and IV onlyRefer to section 7.1.Blooms: ComprehensionDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend and capital gain yield33. Computing the present value of a growing perpetuity is most similar to co

22、mputing the current value of which one of the following? A. Non-dividend-paying stockB. Stock with a constant dividendC. Stock with irregular dividendsD. Stock with a constant growth dividendE. Stock with growing dividends for a limited period of timeRefer to section 7.1.Blooms: ComprehensionDifficu

23、lty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Growing perpetuity34. Jensen Shipping has four open seats on its board of directors. How many shares will a shareholder need to control to ensure that his or her candidate is

24、 elected to the board given the fact that the firm uses straight voting? Assume one share equals one vote. A. 20 percent of the shares plus one voteB. 25 percent of the shares plus one voteC. 1/3 of the shares plus one voteD. 50 percent of the shares plus one voteE. 51 percent of the shares plus one

25、 vote51. Keller Metals common stock is selling for $36 a share and has a dividend yield of 3.2 percent. What is the dividend amount? A. $0.32B. $1.15C. $3.49D. $11.25E. $11.52Dividend = 0.032 $36 = $1.15AACSB: AnalyticBlooms: AnalysisDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend amount