Which index is important constant quality

Assignment Help Financial Management

Reference no: EM132002132

1. Synder Computer Chips Inc. is experiencing a period of rapid growth. Earnings per share are expected to grow at a rate of 25% during the next three years, 15% in the fourth year and 10 percent thereafter. The company plans to initiate dividends payment for the first time in the fifth year (No dividend payout in the first 4 years). The dividend payout ratio will be kept constant at 60%. The earnings per share is $1 this year. The required rate of return on the stock is 13%.

What is the earnings per share in the fifth year?

a. 3.07

b. 2.07

c. 1.47

d. 2.47

e. 2.97

2. Which index is an important constant quality house price index for the U.S?

a. S&P 500

b. S&P MidCap 400

c. S&P Case-Shiller

d. S&P SmallCap 600

e. S&P total Market

3. Working capital management:

a. balances the amount of company debt to the amount of available equity.

b. is concerned with the upper portion of the balance sheet.

c. ensures that dividends are paid to all stockholders on an annual basis.

d. ensures that sufficient equipment is available to produce the amount of product desired on a daily basis.

e. ensures that long-term debt is acquired at the lowest possible cost.

Reference no: EM132002132

Questions Cloud

Actively involved in management of business activities : Al, Sal, and Val are equal shareholders in an S Corporation. Al is not actively involved in management of business activities

Tax treatment under the ftc scheme for bringing cashflows : If the tax rate in Canada is lower than in the US, what is the tax treatment under the FTC scheme for bringing cashflows from Canada?

Prevailing market rate of interest on similar bonds : When a bond’s coupon rate is less than the prevailing market rate of interest on similar bonds, will the bond sell at par, a discount, or a premium?

What is the current unemployment rate : What is the current unemployment rate in the U.S.?

Which index is important constant quality : Working capital management. Which index is an important constant quality house price index for the U.S?

The downside risk of investment position : How do margin trades magnify both the upside potential and the downside risk of an investment position? Explain with examples.

Shared practice-evaluation methods : To prepare for this Discussion, “Shared Practice: Evaluation Methods,” review the evaluation methods utilized by organizations for decision making.

Ten years later the firm liqudiates its investment : VC firm X makes a $1 million dollar investment. Ten years later the firm liqudiates its investment for $80 million. The IRR of the investment is over 61%.

Relative purchasing power parity : Relative Purchasing Power Parity (PPP): Consider relative PPP and remember the consumer price index provides the price level in a country at any point in time.

User Account

All Pages