Required return on stock using discounted cash flows

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Reference no: EM132051224

1. Which of the following describes the required return on stock using discounted cash flows (DCF)?

a. bond yield plus 4% b. dividend yield plus growth rate c. future cash flows divided by required return d. growth rate minus the dividend yield Answer?

2. The cost of retained earnings is really a(n):

a. floatation fee. b. interest rate parity rate. c. opportunity cost. d. Treasury yield.

3. The net issue price on preferred stock is the current price _______ floatation costs.

a. divided by b. minus c. plus d. times

Reference no: EM132051224

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