review exam - 4259 Words

Fin 3010 Dr. Michello Summer 2007 Practice Problems Expected dividend yield Answer: a EASY i. If D1 = $2.00, g (which is constant) = 6%, and P0 = $40, what is the stock’s expected dividend yield for the coming year? a. 5.0% b. 6.0% c. 7.0% d. 8.0% e. 9.0% Expected return, dividend yield, and capital gains yield Answer: e EASY ii. If D1 = $2.00, g (which is constant) = 6%, and P0 = $40, what is the stock’s expected capital gains yield for the coming year? a. 5.2% b. 5.4% c. 5.6% d. 5.8% e. 6.0% Expected total return Answer: d EASY iii. If D0 = $2.00, g (which is constant) = 6%, and P0 = $40, what is the stock’s expected total return for the coming year? a. 9.8% b. 10.3% c. 10.8% d. 11.3% e. 11.8%†¦show more content†¦An increase in a firm’s expected growth rate would normally cause its required rate of return to a. Increase. b. Decrease. c. Fluctuate. d. Remain constant. e. Possibly increase, decrease, or have no effect. Required return Answer: d EASY xviii. If a stock’s expected return exceeds its required return, this suggests that a. The stock is experiencing supernormal growth. b. The stock should be sold. c. The company is probably not trying to maximize price per share. d. The stock is probably a good buy. e. Dividends are not being declared. Constant growth model Answer: a MEDIUM xix. Which of the following statements is CORRECT? a. The constant growth model takes into consideration the capital gains earned on a stock. b. It is appropriate to use the constant growth model to estimate stock value even if the growth rate is never expected to become constant. c. Two firms with the same expected dividend and growth rate must also have the same stock price. d. If a stock has a required rate of return rs = 12%, and if its dividend is expected to grow at a constant rate of 5%, this implies that the stock’s dividend yield is also 5%. e. The price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate. Constant growth model Answer: c MEDIUM xx. If a stock’s dividend is expected to grow at a constant rate of 5% a year, which of the followingShow MoreRelatedExam Review2016 Words   |  9 PagesReview Exam 2 1. Planet X has a radius 3 times larger than the earth’s radius. How does this planet’s volume compare to Earth’s volume? a. The volume is 3 times larger than the Earth’s radius. b. The volume is 1/9 the Earth’s radius. c. The volume is 27 times the Earth’s Radius. d. The volume is 1/27 times the Earth’s radius. 2. The moons X and Y orbit 2 different planets. They have the same orbital velocity, but the distance of X from its planet is 2 times theRead MoreFinal Exam Review1463 Words   |  6 PagesComm 1332 Comprehensive Exam Review To thoroughly prepare for your exam, the following review process is recommended: 1. Review lecture notes and powerpoint files for each chapter (copies on webct). 2. Practice OUTLINING (coordinating and subordinating: framing main point/subpoint/sub-subpoint information). 3. Finally, specific knowledge of the following will prove useful: 1. The 3 purposes of public speaking To inform, to persuade, to entertain 2. The 9 elements that affect publicRead MoreReview For Exam 22476 Words   |  10 Pagesï » ¿ Women and Crime CCJ 4670 REVIEW FOR EXAM 2 Review the Key Terms at the end of each chapter. Lecture 5 – Delinquency across the Life Span 1. Describe Claussen’s classic study of children of the Great Depression and its findings. 2. Define â€Å"turning point.† -involves a gradual or dramatic change which may lead to a modification, reshaping, or transition from one state, condition, or phase to another 3. Describe the various explanations for the age of desistance from crime. As age increasesRead MoreExam 1 Review1937 Words   |  8 Pages12345) Mid-Term Exam – Review Questions 1) All of these are pitfalls an organization should avoid in strategic planning EXCEPT (Ch. 1) Some pitfalls to watch for and avoid in strategic planning are these: ï‚ · Using strategic planning to gain control over decisions and resources ï‚ · Doing strategic planning only to satisfy accreditation or regulatory requeriments ï‚ · Too hastily moving from mission development to strategy formulation ï‚ · Failing to communicate the plan to employees, who continue workingRead More|Review Problems for Exams4693 Words   |  19 Pages|Review Problems for Exams -- FINA 6301 – Dr. Park | Chapters 2 and 3 [i]. In 2004, TimeNow Corporation had fixed assets of $1,345, current assets of $260, current liabilities of $180 and shareholders equity of $775. What was the net working capital for TimeNow in 2004? [ii]. During 2004, the Abel Co. had gross sales of $1 million. The firm’s cost of goods sold and selling expenses were $300,000 and $200,000Read MoreExam Review Essay2444 Words   |  10 Pages------------------------------------------------- Chapter 1 Review Questions 1. What is the goal of science? The major goal of science is to ask answer questions about the physical universe that we live in. 2. How is observation different from imagination? Observation gathers only what data is obviously true. Imagination can go anywhere—factual or not. 3. Write an equation in words then in symbols for the following sentence: The price of coffee beans is equal to the weightRead MoreEssay on Midterm Exam ( Review)1542 Words   |  7 PagesExam Review 1 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Each of the following functions are within the framework for Human Resources Management EXCEPT: a. recruitment and selection. b. training and development. c. employee relations. d. employee discipline. 2. Which of the following is NOT a primary impact that technology has had on HRM? a. It has improved the processes of internal and external communications. b. It has altered the methodsRead MoreExam 1 Review3345 Words   |  14 Pagesfine-tune scans or probes Answers: Information about vulnerabilities Information that will help fine-tune scans or probes Passwords Competitors †¢ Question 4 5 out of 5 points What database of financial records should penetration testers review? Selected Answer: EDGAR Answers: ALICE EDGAR Both A and B Neither A nor B †¢ Question 5 5 out of 5 points Which of the following examples best portrays passive information gathering? Selected Answer: Reviewing job listingsRead MoreExam 1 Review Essay619 Words   |  3 PagesExam 1 Review BIO 130: Introduction to Environmental Science Unit 1 Be able to define an environmental factor. There are two types (condition and resource). What is the difference between a condition and a resource? Be able to categorize particular environmental factors as conditions OR resources (for example, temperature is a condition and not a resource). Be able to rank from smallest to largest: ecosystem, landscape, biome, biosphere Be able to rank from smallest to largest (in termsRead MoreExam review for CJ Essay912 Words   |  4 PagesCriminal Justice 3311 Review Questions Exam 2 To insure you obtain the best possible grade, be sure to research each question as completely as possible. Try to answer these questions as if you are providing information to an individual who knows nothing about each topic. Explain your answers in detail; remember, the more complete your answer is the better your grade will be. 1. The importance of Lawrence Kohlberg’s work is the link he makes between moral development and reason. Although