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Total Questions : 131 | Page 5 of 14 pages
Question 41. In expected rate of return for constant growth, an expected yield on capital must be
  1.    equal to zero
  2.    greater than expected growth rate
  3.    less than expected growth rate
  4.    equal to expected growth rate
 Discuss Question
Answer: Option D. -> equal to expected growth rate
Answer: (d).equal to expected growth rate
Question 42. An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as
  1.    market efficiency
  2.    semi strong efficiency
  3.    weak form efficiency
  4.    strong form efficiency
 Discuss Question
Answer: Option D. -> strong form efficiency
Answer: (d).strong form efficiency
Question 43. An expected dividend yield is added into expected growth rate to calculate
  1.    dividend return
  2.    expected rate of return
  3.    expected capital
  4.    invested capita
 Discuss Question
Answer: Option B. -> expected rate of return
Answer: (b).expected rate of return
Question 44. The dividend yield is 25% and the current price is $40 then the dividend yield will be
  1.    0.65
  2.    10
  3.    65
  4.    15
 Discuss Question
Answer: Option B. -> 10
Answer: (b).10
Question 45. The paid dividend with dividend yield 25% is $5 then the cost price would be
  1.    0.3
  2.    30
  3.    0.2
  4.    20
 Discuss Question
Answer: Option D. -> 20
Answer: (d).20
Question 46. An expected final stock price is $45 and an original investment is $25 then an expected capital gain will be
  1.    75
  2.    −$75
  3.    −$20
  4.    20
 Discuss Question
Answer: Option D. -> 20
Answer: (d).20
Question 47. The shares or stocks which are protected against withdrawals of funds by an original stock owners are classified as
  1.    protected shares
  2.    founders shares
  3.    withdrawal shares
  4.    original shares
 Discuss Question
Answer: Option B. -> founders shares
Answer: (b).founders shares
Question 48. The preferred dividend is $50 and the required rate of return is 2.5% then the value of preferred stock would be
  1.    0.2
  2.    125
  3.    2000
  4.    52.5
 Discuss Question
Answer: Option C. -> 2000
Answer: (c).2000
Question 49. The method of stock valuation which is the multiple of earnings per share, book value and net income is classified as
  1.    stock multiple analysis
  2.    dividend multiple analysis
  3.    market multiple analysis
  4.    stock and multiple analysis
 Discuss Question
Answer: Option C. -> market multiple analysis
Answer: (c).market multiple analysis
Question 50. The dividend present value for period of non-constant growth in addition with horizon value is used to calculate
  1.    stock extrinsic value
  2.    stock intrinsic value
  3.    dividend intrinsic value
  4.    stock intrinsic value
 Discuss Question
Answer: Option D. -> stock intrinsic value
Answer: (d).stock intrinsic value

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