Dividend growth rate is equivalent to dividend yield

Assignment Help Financial Management

Reference no: EM131937333

1. Which of the following statement is true?

The yield to maturity on a premium bond exceeds the bond's coupon rate.

The higher the yield to maturity, the lower the current price of the bond.

The coupon rate is the coupon payment divided by the current price of the bond.

The regular interest payment of a bond is called the coupon payment

2. Which of the following statement is true?

Dividend growth rate is equivalent to dividend yield.

Assume a constant annual dividend. If there is a decline in the stock's price, the dividend yield increases.

The benchmark PE ratio can be used to value the stock of firms that pay no dividends.

Assume a constant dividend growth. Increase in the capital gains yield will increase the current value of a stock.

Reference no: EM131937333

Questions Cloud

Relates to the firm weighted average cost of capital : What is the weight of the debt as it relates to the firm's weighted average cost of capital?

Stock price will be because of tax shield benefit of debt : What is the new stock price will be because of tax shield benefit of debt, and how many shares it can repurchase?

Calculate pre-tax cost of debt capital : Calculate Pre-tax cost of debt capital. What is the current price of the bonds if the coupon rate on those bonds is 9.00 percent?

What is the net investment outlay : What is the candyy net investment outlay? What is the terminal year after-tax non-operating cash flow at the end of year five?

Dividend growth rate is equivalent to dividend yield : The yield to maturity on a premium bond exceeds the bond's coupon rate. Dividend growth rate is equivalent to dividend yield.

What is the alpha of ibm when you use capm : What is the alpha of IBM when you use CAPM? Would you buy or short sell IBM?

Stock dividends : In the US, stock dividends:

How much should you be willing to pay for stock : If you require a 15 percent rate of return, how much should you be willing to pay for this stock?

According to the interest rate parity theory : If the interst rate in Great Britain remains 2.5%, what should the interest rate be in the U.S. according to the interest rate parity theory?

User Account

All Pages