All else constant, the dividend yield of a stock will increase if the stock price Blank______. Multiple choice question. decreases increases stays the same
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All else constant, the dividend yield of a stock will increase if the stock price Blank______.
decreases
increases
stays the same
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- What information is needed to determine the value of a stock using the zero-growth model? More than one answer may be correct. Multiple select question. Required return Dividends Capital gains Future price of the stockAll else being equal, a(n) Blank______ in the stock's required return leads to a(n) Blank______ in the stock's price. Multiple choice question. increase, decrease increase, zero change decrease, zero change increase, increaseWhich of the following will (holding everything else constant) cause the price earnings (P/E) ratio of a stock to decrease: The required return increases The risk-free rate decreases The stock's beta decreases The required return decreases
- Which of the following statements is true about the constant dividend growth model? Group of answer choices 1. When using a constant growth model to analyze a stock, if an increase in the required rate of return occurs while the growth rate remains the same, this will lead to no change in the value of the stock 2. When using a constant growth model to analyze a stock, if an increase in the required rate of return occurs while the growth rate remains the same, this will lead to a decreased value of the stock 3. When using a constant growth model to analyze a stock, if an increase in the required rate of return occurs while the growth rate remains the same, this will lead to a increased value of the stockHigher a stock’s volatility, why does the higher the probability of large increases or decreases in market price?Which of the following is most likely a correct statement in regards to stock valuation models? The lower the expected dividends and higher the discount rate, the higher the value of the stock today, with all else being constant. The lower the required return on the stock, the lower the projected dividends for the stock, with all else being constant. The higher the expected growth rate of dividends, the higher the value of the stock. 0.000 I. II. III. I only II and III III only None of the above
- Generally speaking, a growth stock has ________interest rate risk and duration than a value stock. Multiple Choice More, longer None of the above More, shorter Less, longer less, shorterThe dividend on a zero-growth common stock is Blank______. Multiple choice question. indeterminable always more than the preferred dividend constant zeroIf the intrinsic value of a stock is greater than its market value, which of the following is a reasonable conclusion? O 1. The stock offers a high dividend payout ratio. 02 The market is overvaluing the stock. O 3. The stock has a low level of risk. O 4. The market is undervaluing the stock
- Please help by telling me the correct awnser The value of an ordinary shareSelect one or more:a. Will fall if future profit forecasts are higher than expectedb. Is always at its fundamental valuec. Can rise and fall along with market sentimentd. Will rise if a firm introduces some cost saving innovationUnder which of the following circumstances would you want to buy a stock? Select one: a. The HPR is greater than zero. b. A stock's holding period return is greater than the CAPM return c. A stock's CAPM return is greater than its holding period return d. The stock's price is higher than its valueWhich of the following statements regarding the dividend discount model for computing stock prices is/are true: I. Non-dividend paying stocks would have a price of zero. II. It assumes the cost of capital is known and constant. O I only Both I and II ONeither I nor II O II only

