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1. (TCO D) Find the current dividend on a stock, given that the required return is 9 percent, the dividend growth rate is 6 percent, and the stock price is $50 per share.;a. $1.42;b. $1.25;c. $1.75;d. $2.00;2. (TCO D) Find the required return for a stock, given that the current dividend is $4.25 per share, the dividend growth rate is 6.5 percent, and the stock price is $101.00 per share.;a. 10.98%;b. 9.91%;c. 10.18%;d. 8.91%;3. (TCO D) A company has current assets of: cash $500, accounts receivable $200, and inventory $400. The company also has current liabilities of: accounts payable $300 and notes payable $600. What is the company's quick ratio?;a..78;b..88;c..90;d..55;4. (TCO B) Jaffee found that stock prices __________ after insiders intensively bought shares and __________ after insiders intensively sold shares.;a. decreased, decreased;b. decreased, increased;c. increased, decreased;d. increased, increased;5. (TCO B) Attempting to forecast future earnings and dividends is consistent with which of the following approaches to securities analysis?;a. Technical analysis;b. Fundamental analysis;c. Both technical and fundamental analysis;d. Indexing;6. (TCO A) _____ is considered to be an emerging market country.;a. France;b. Norway;c. Brazil;d. Canada;7. (TCO A) Explicit costs of an IPO tend to be around ______ of the funds raised.;a. 1%;b. 7%;c. 15%;d. 25%;8. (TCO A) You earned eight percent on your corporate bond portfolio this year and you are in a 15 percent federal tax bracket. If over your holding period, inflation was three percent, your real after-tax rate of return was _____.;a. 6.80%;b. 3.89%;c. 4.91%;d. 4.25%;9. (TCO I) CAPM is one of the more popular models for determining the risk premium on a stock. What is the expected market return given an expected return on a security of 15.8%, a stock beta of 1.2, and a risk free interest rate of 5.0%? Find the Expected Market Return. Show your work.;10. (TCO D) XYZ company paid a dividend of $1.25 during the past 12 months. The expected growth rate is 7 percent, and the required rate of return is 9.5 precent based on the cost of capital. Calculate the current price of the stock. Do not use a financial calculator or an online calculator. You must show your work.;11. (TCO D) Company XYZ is expected to grow at 12% annually forever, and its dividend in the next 12 months is expected to be $3.50, and its required rate of return is 15.5%.;a. What is its intrinsic value?;b. If the current price is equal to its intrinsic value, what is next year's expected price?;c. Assume you buy the stock now and sell it after receiving the $3.50 dividend one year from now.;What would be your anticipated capital gain in percentage terms?;12. (TCO E) In technical analysis there are multiple indicators of market movement. The three most widely known are Breadth of the Market, Advance/Decline indicator, and the Advance/Decline Line. Provide a brief explanation of what each indicator tells us.;13. (TCO B) Although the Efficient Markets Hypothesis is a popular theory, there are several limitations. Identify and explain two of those limitations.


Paper#79929 | Written in 18-Jul-2015

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