Determine the market rate of return

Reference no: EM1350836

1. Next year's annual dividend divided by the current stock price is called the:
yield to maturity.
total yield.
dividend yield.
capital gains yield.
earnings yield.

2. Payments made by a corporation to its shareholders, in the form of either cash, stock or payments in kind, are called:
retained earnings.
net income.
dividends.
redistributions.
infused equity.

3. The discount rate in equity valuation is composed entirely of:
the dividends paid and the capital gains yield.
the dividend yield and the growth rate.
the dividends paid and the growth rate.
the capital gains earned and the growth rate.
the capital gains earned and the dividends paid.

4. Bet'R Bilt Bikes just announced that its annual dividend for this coming year will be $2.42 a share and that all future dividends are expected to increase by 2.5% annually. What is the market rate of return if this stock is currently selling for $22 a share?
9.5%
11.0%
12.5%
13.5%
15.0%

5. How much are you willing to pay for one share of stock if the company just paid an $.80 annual dividend, the dividends increase by 4% annually and you require an 8% rate of return?
$19.23
$20.00
$20.40
$20.80
$21.63

Reference no: EM1350836

Questions Cloud

Create an eer mode using traditional eer notation : Create an EER model for the following situation using traditional EER notation, the Visio notation or the supertypes notation. An international school of technology has hired you to create a database management system

Best predictors of job performance : Cognitive ability tests are one of the best predictors of job performance, yet studies show they have substantial adverse impact against minorities.

Calculate the expected value for each purchase level : Calculate the expected value (EMV) for each purchase level and What is the optimal number of pounds of clams the company should purchase

Practice in validating proposal to leadership : You need provide a practice in validating your proposal to leadership. You gain experience in justifying change and expenditures in order to mitigate risk while validating your ideas.

Determine the market rate of return : Bet'R Bilt Bikes just announced that its yearly dividend for this coming year will be $2.42 a share and that all future dividends are expected to increase by 2.5% yearly.

Research child-raising practices of the culture : Research child-raising practices of the culture of your choice and predict their psychosocial development (Erikson's theory) based on your research.

Internal control questionnaire : What is the general nature of the questions included in internal control questionnaires? Identify several advantages of using questionnaires to document the auditor's understanding of internal control.

Fetal alcohol syndrome : If a mother knowingly ingests a quantity of alcohol that causes her child to develop Fetal Alcohol Syndrome (FAS), is she guilty of child abuse? Why or Why not?

Explain it personnel will install a new phone system : Explain IT personnel will install a new phone system for all departments and Which sentence uses an expletive

User Account

All Pages