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4. A share of stock currently sells for $80, pays an annual dividend of $7.00, and earned a rate of return of 35% over the past year. What did this stock sell for one year ago? ( ) A. $59.26 B. $64.44 3/6

4. A share of stock currently sells for $80, pays an annual dividend of $7.00, and earned a rate of return of 35% over the past year. What did this stock sell for one year ago? ( ) A. $59.26 B. $64.44 3/6

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. A share of stock currently sells for $80, pays an annual dividend of $7.00, and earned a rate of return of 35% over the past year. What did this stock sell for one year ago? ( ) A. $59.26 B. $61.44 C. $80 D. $248, 57 5. If a stock consistently goes down (up) by 1.8% when the market portfolio goes down (up) by 1.4%, then its beta equals: () A. 1.01. B. 1.29 C. 1.33 D. 1.40 3/6 6. The weighted average cost of capital for a firm with a 60/40 debt/equity split, 20% pre-tax cost of debt, 25% cost of equity, and a 30% tax rate would be: ( ) A 8.63% B. 11% C. 14.8% D. 22% 7. Capital structure decisions refer to the: ( dividend yield of the firm's stock. blend of equity and debt used by the firm. capital gains available on the firm's stock. maturity date for the firm's securities. A. B. C. D. )
Transcribed Image Text:4. A share of stock currently sells for $80, pays an annual dividend of $7.00, and earned a rate of return of 35% over the past year. What did this stock sell for one year ago? ( ) A. $59.26 B. $61.44 C. $80 D. $248, 57 5. If a stock consistently goes down (up) by 1.8% when the market portfolio goes down (up) by 1.4%, then its beta equals: () A. 1.01. B. 1.29 C. 1.33 D. 1.40 3/6 6. The weighted average cost of capital for a firm with a 60/40 debt/equity split, 20% pre-tax cost of debt, 25% cost of equity, and a 30% tax rate would be: ( ) A 8.63% B. 11% C. 14.8% D. 22% 7. Capital structure decisions refer to the: ( dividend yield of the firm's stock. blend of equity and debt used by the firm. capital gains available on the firm's stock. maturity date for the firm's securities. A. B. C. D. )
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