|
|
|
Chap007.docx
Chap007.docx
Showing 1-2 out of 23
Chap007.docx-CHAPTER 7 Equity Markets and Stock
Chap007.docx-CHAPTER 7 Equity Markets and Stock
Chap007.docx-CHAPTER 7 Equity Marke...
Chap007.docx-CHAPTER 7 Equity Markets and Stock
Page 1
CHAPTER 7
Equity Markets and Stock Valuation
I.
DEFINITIONS
DIVIDEND GROWTH MODEL
d
1.
The stock valuation process which determines the price of a stock by dividing the
next
period’s dividend by the discount rate less the dividend growth rate is called the:
a.
stock price model.
b.
pricing formula.
c.
capital gain model.
d.
dividend growth model.
e.
gains formula.
ZERO GROWTH
a
2.
A stock which pays a constant dollar dividend over an extended period of time is
referred to as a
__ stock.
a.
zero growth
b.
constant growth
c.
regular
d.
minimal
e.
diminishing
CONSTANT GROWTH
d
3.
The Bigelow Co. increases their annual dividend by 3 percent each and every year.
This stock is referred to as a(n)_______stock.
a.
increasing gains
b.
constant dividend
c.
regular
d.
constant growth
e.
variable
NONCONSTANT GROWTH
e
4.
The dividends paid by the Jon Stone Co. over the past 4 years were $.40, $1.00,
$1.10, and $1.13, respectively. The name given to this type of stock is:
a.
rising growth.
b.
flexible growth.
c.
variable yield.
d.
flexible yield.
e.
nonconstant growth.
DIVIDEND YIELD
b
5.
Next year’s expected annual dividend divided by today’s stock price is called the
stock’s:
a.
required return.
b.
dividend yield.
c.
maturity yield.
d.
capital gains yield.
e.
capital return.
Page 2
CAPITAL GAINS YIELD
d
6.
The rate at which the value of an investment grows is called the:
a.
required return.
b.
dividend yield.
c.
capital return.
d.
capital gains yield.
e.
maturity yield.
COMMON STOCK
c
7.
The type of security which represents ownership in a firm without priority for
dividends or priority in a bankruptcy is called
__ stock.
a.
convertible
b.
senior
c.
common
d.
preferred
e.
treasury
CUMULATIVE VOTING
b
8.
Cumulative voting refers to the process in which a shareholder:
a.
must cast all votes for one member of the board of directors.
b.
may cast all votes for one member of the board of directors.
c.
votes for directors one at a time.
d.
can carry over votes for directors from prior elections if not cast at that time.
e.
gathers proxies to increase the votes cast for one director.
STRAIGHT VOTING
b
9.
Straight voting is defined as the process where the directors are elected:
a.
simultaneously.
b.
one at a time.
c.
solely through the use of proxies.
d.
for a single year only.
e.
by each shareholder casting a single vote.
PROXY
d
10. The authority granted by a shareholder that permits another individual to vote that
shareholder’s shares is called a:
a.
straight vote.
b.
cumulative vote.
c.
statement.
d.
proxy.
e.
preference.
DIVIDENDS
c
11. Payments to shareholders by a corporation that represent a return on capital are
called:
a.
payouts.
b.
capital gains.
c.
dividends.
d.
treasury distributions.
e.
required returns.
PREFERRED STOCK
Ace your assessments! Get Better Grades
Browse thousands of Study Materials & Solutions from your Favorite Schools
Ohio State University-Mai...
Ohio_State_University-Main_Campus
School:
Introduction_to_Business_Finance
Course:
Great resource for chem class. Had all the past labs and assignments
Leland P.
Santa Clara University
Introducing Study Plan
Using AI Tools to Help you understand and remember your course concepts better and faster than any other resource.
Find the best videos to learn every concept in that course from Youtube and Tiktok without searching.
Save All Relavent Videos & Materials and access anytime and anywhere
Prepare Smart and Guarantee better grades
Know more
Students also viewed documents
lab 18.docx
lab_18.docx
Course
Course
3
Module5QuizSTA2023.d...
Module5QuizSTA2023.docx.docx
Course
Course
10
Week 7 Test Math302....
Week_7_Test_Math302.docx.docx
Course
Course
30
Chapter 1 Assigment ...
Chapter_1_Assigment_Questions.docx.docx
Course
Course
5
Week 4 tests.docx.do...
Week_4_tests.docx.docx
Course
Course
23
Week 6 tests.docx.do...
Week_6_tests.docx.docx
Course
Course
106
