Which of the following is a method for valuing a stock using expected future dividends?A) Net Present Value (NPV)B) Dividend Discount Model (DDM)C) Price-to-Earnings (P/E) RatioD) Internal Rate of Return (IRR)
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Which of the following is a method for valuing a stock using expected future dividends?
A)
B)
C) Price-to-Earnings (P/E) Ratio
D)
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- Which of the following is a method for valuing a stock using expected future dividends?A) Net Present Value (NPV)B) Dividend Discount Model (DDM)C) Price-to-Earnings (P/E) RatioD) Internal Rate of Return (IRR) explain.Explain the difference between expected rate of return, required rate of return, and historical rate of return when applied to common stock.Which of the following ratios would analysts use to value stocks? Select one: a. All of the above b. Price per Earnings c. Price per sales d. Price per cash flow
- n the formula ke >= (D1/P0) + g, what does (D1/P0) represent? Select one: a. The expected capital gains yield from a common stock b. The interest payment from a bond c. The expected dividend yield from a common stock d. The dividend yield from a preferred stockCalculate the dividend payment of a stock?Which of the following represents the value of a stock calculated using the zero-growth model? Multiple choice question. (Dividends)Discount rate Dividends / Discount rate Dividends × Discount rate Discount rate / Dividends
- When using discounted dividend method to estimate stock price, which of the following should be used as the discount rate? - required return of debt - risk free rate - required return of the equity - WACC - Bank deposit rateDefine actual rate of return on stockDefine each of the following terms:a. Optimal distribution policyb. Dividend irrelevance theory; bird-in-the-hand theory; tax effect theoryc. Signaling hypothesis; clientele effectd. Residual distribution model; extra dividende. Declaration date; holder-of-record date; ex-dividend date; payment datef. Dividend reinvestment plan (DRIP)g. Stock split; stock dividend; stock repurchase
- Explain how to find the value of a stock given itslast dividend, its expected growth rate, and itsrequired rate of return.How do you calculate price earnings ratio, given the stocks historical prices?What does the capital asset pricing model (CAPM) calculate? a. The expected rate of return on an individual stock with respect to the risk-free rate of return b. The expected rate of return of an individual stock based on its overall risk c. The expected rate of return of an individual stock with respect to its market risk only d. The expected rate of return of an individual stock reflecting its financial risk Clear my choice
