Reference no: EM131106684
1. The preferred stock of the Limbaugh Institute pays a constant annual dividend of $4 and sells for $50. You believe the stock will sell for $32 in one year. You must, therefore, believe that the required return on the stock will be _____ percentage points ________ in one year.
A) 8; higher
B) 8; lower
C) 1.5; higher
D) 2.5; lower
E) 4.5; higher
2. A firm's stock has a required return of 12%. The stock's dividend yield is 5%. What is the dividend the firm is expected to pay in one year if the current stock price is $50?
A) $2.00
B) $2.50
C) $3.00
D) $3.50
E) $4.00
3. A firm's stock has a required return of 12%. The stock's dividend yield is 5%. What dividend did the firm just pay if the current stock price is $50?
A) $2.18
B) $2.34
C) $2.50
D) $2.87
E) $3.60
4. The difference between the market value of an investment and its cost is the:
A) Net present value.
B) Internal rate of return.
C) Payback period.
D) Profitability index.
E) Discounted payback period.
5. The net present value (NPV) rule can be best stated as:
A) An investment should be accepted if, and only if, the NPV is exactly equal to zero.
B) An investment should be rejected if the NPV is positive and accepted if it is negative.
C) An investment should be accepted if the NPV is positive and rejected if its is negative.
D) An investment with greater cash inflows than cash outflows, regardless of when the cash flows occur, will always have a positive NPV and therefore should always be accepted.
|
What type of company should your organization acquire
: A large advertising agency is working with a client who wants to gain market shares from its competitors by marketing to young professionals. The agency needs to decide whether to spend all of the marketing funds on a single form of media (intern..
|
|
Iterations of the two strategies over the six-year period
: Your next-door neighbor, Scott Jansen, has a 12- year-old daughter, and he intends to pay the tuition for her first year of college six years from now.
|
|
Given differential equation
: Given differential equation
|
|
How to prepare and present an informative speech
: After you have brainstormed aspects of your speech, write a delivery outline of your informative speech about how to prepare and present an informative speech
|
|
Computing the required return on the stock
: 1. The preferred stock of the Limbaugh Institute pays a constant annual dividend of $4 and sells for $50. You believe the stock will sell for $32 in one year. You must, therefore, believe that the required return on the stock will be _____ percent..
|
|
If the preferred stock is cumulative and dividends
: If the preferred stock was issued at $107 per share, how should the preferred stock be reported in the stockholders' equity section?
|
|
Incremental cash flows of the project
: Prepare a statement showing the incremental cash flows of the project relevant to a decision concerning whether or not to proceed with the construction of the new plant.
|
|
Conducted an extensive inventory analysis
: Austin (1977) conducted an extensive inventory analysis for the United States Air Force. He found that for over 250,000 items the annual holding cost was assumed to equal 32% of the item's purchase price. He also found that when an order was place..
|
|
Disappointed with the high level of inventory
: Based on Brout (1981). Planner's Peanuts sells 100 products. The company has been disappointed with the high level of inventory it keeps of each product and its low service level (percentage of demand met on time).
|