Q.1
Real risk-free rate is applicable when it is expected that there will be
Q.2
Bonds that do not pay original coupon payment but payment is made from additional bonds are classified as
Q.3
According to top rating agencies S&P double-B and other lower grade bonds are classified as
Q.4
In expected rate of return for constant growth, an expected total rate of return must be
Q.5
Bond call provision that is not practiced even after several years of issuance is classified as
Q.6
An expected rate of return is subtracted from capital gains yield to calculate
Q.7
After-the-fact rate of return often consider as realized or actual can be denoted
Q.8
In expected rate of return for constant growth, dividends are expected to grow but with the
Q.9
Value of future dividends after horizon date is classified as
Q.10
Pre-emptive right of common stockholders are necessarily included in company
Q.11
An expected dividend yield is subtracted from an expected rate of return which is used to calculate
Q.12
First step in calculating value of stock with non-constant growth rate is to
Q.13
Calculation of formula in common stock valuation does not include
Q.14
Expected capital gain is Rs 20 and expected final price is Rs 50 then original investment will be
Q.15
Preferred dividend is Rs 60 and required rate of return is 20% then value of preferred stock will be
Q.16
An earning before interest, taxes, depreciation and amortization average multiple for publicly traded companies is classified as
Q.17
Stock in large companies and own by people who are not active in management is classified as
Q.18
Information which is reflected in current market prices with help of past price movements is classified as
Q.19
Constant growth rate is 8% and an expected dividend yield is 5.4% then expected rate of return would be
Q.20
Real rate of return, risk and expected inflation are primary determinants of
Q.21
Preferred stocks are also classified as
Q.22
Paid dividend is Rs 20 and dividend yield is 40% then current price would be
Q.23
Preferred stock dividends must be paid on common stock and must have
Q.24
An expected dividend yield is 7.5% and an expected rate of return is 15.5% then constant growth rate will be
Q.25
Capital gain is Rs 3 and capital gains yield is 6% then beginning price will be
Q.26
Growth rate which is predicted by marginal investors for dividends is classified as
Q.27
An expected final stock price is Rs 70 and an expected capital gain is Rs 25 then an original investment would be
Q.28
Constant growth model would not be used in condition if growth rate is
Q.29
Cash flow which is available for all investors of company is classified as
Q.30
Present value of dividends which is expected to be provided in future is classified as an
Q.31
Constant growth rate is 7.2% and an expected rate of return is 12.5% then expected dividend yield will be
Q.32
An original investment is Rs 30 and an expected capital gain is Rs 10 then an expected final stock price will be
Q.33
Constant growth rate is 6.5% and an expected dividend yield is 3.4% then an expected rate of return would be
Q.34
Value of stock is Rs 1200 and preferred dividend is Rs 120 then required rate of return would be
Q.35
Expected dividends in each year and price investor expecting to get at selling of stock are two components of
Q.36
An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as
Q.37
An expected dividend yield is added into expected growth rate to calculate
Q.38
Dividend yield is 25% and current price is Rs 40 then dividend yield will be
Q.39
Dividend expected on stock during coming year is classified as
Q.40
In expected rate of return for constant growth, capital gains is divided by beginning price to calculate
Q.41
Preferred dividend is divided for required rate of return to calculate
Q.42
According to investors point of view, an expected rate of return is rate on stocks which they
Q.43
Second step in calculating value of stock with non-constant growth rate is to find out an
Q.44
Owners of corporation having certain rights and privileges are considered as
Q.45
Stockholders having right to elect directors and in smaller firms have high post are classified as
Q.46
Paid dividend with dividend yield 25% is Rs 5 then cost price would be
Q.47
An expected final stock price is Rs 45 and an original investment is Rs 25 then an expected capital gain will be
Q.48
Value of stock is Rs 400 and required rate of return is 20% then preferred dividend would be
Q.49
An amount of company retain earning, return on equity and inflation are factors which effect
Q.50
In expected rate of return for constant growth, an expected dividend yield must be
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