What is the GLOBAL Technology Beta

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Question 1 - GLOBAL Technology's stock is currently selling for P40 a share. The stock is expected to pay a P2.00 dividend at the end of the year. The stock's dividend is expected to grow at a constant rate of 7% per year forever. The risk-free rate is 6% and the market risk premium is also 6%.

1. What is the GLOBAL Technology's Beta?

A. 1.0

B. 1.06

C. 1.25

D. 2.0

2. What is the expected dividend yield?

A. 4.67%

B. 5%

C. 5.35%

D. 7.0%

3. Determine the capital gains yield?

A. 6%

B. 6.65%

C. 7%

D. 7.33%

4. What is the expected stock price three years from today?

A. P42.8

B. P45.80

C. P 49

D. 52.43

Question 2 - UNION LAND Corporation's financial information stated the following:

Price-Earnings Ratio - 5:1

Expected common stock dividend per share - P4.00

Net Income - P500,000

Outstanding common stocks - 100,000 shares

Average equity - P2,000,000

5. What is the Earnings per share?

A. P1 per share

B. P3 per share

C. P4 per share

D. P5 per share

6. What is the market price per share?

A. P5

B. P15

C. P20

D. P25

7. What is the dividend yield?

A. 21%

B. 20%

C. 16%

D. 10%

8. What is the Plow back Ratio or retention ratio?

A. 5%

B. 10%

C.15%

D. 20%

9. What is the expected growth rate?

A. 5%

B. 10%

C. 15%

D. 20%

10. What is the expected rate of return?

A. 21%

B. 20%

C. 16%

D. 10%

Reference no: EM132845408

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