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
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Which of the following represents the value of a stock calculated using the zero-growth model?
(Dividends)Discount rate
Dividends / Discount rate
Dividends × Discount rate
Discount rate / Dividends
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- The mathematical expression for the price of a stock at time t using a benchmark PE ratio is Blank______. (EPS denotes earnings per share.) Multiple choice question. Pt = Benchmark P/E ratio/Dividend per share Pt = Benchmark P/E ratio/EPSt Pt = Benchmark P/E ratio × EPSt Pt = Benchmark P/E ratio × Dividend per shareWhich 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 flown 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 stock
- Apart from using PE ratio, what is another way of valuing the stock price? if we have the EPS, Share Price, Dividend Per Share, ROE and the discount rate (R). And what are the assumptions and the limitations of this model? Is it the PEG ratio or not??which statement best describe the key difference between the dividend growth rate and the earning per share eps multiple approach in valuing stockshow do I compute or calculate valuation and relative value measure to assses stock correctly? calculation of stock price
- Stock and dividend returns can be shown in percentage, dollar, and per-share values. True or FalseTRUE OR FLASE the dividend payout ratio is the dividend by the stock priceThe price to earnings ratio (P/E) is determined by: Question 6 options: 1) expected dividend payout ratio 2) estimated required return on the stock 3) expected growth rate of dividends 4) b and c only 5) all the above
- Which of the following statement is TRUE? Preference shares have: A. variable dividends and stable market values B. fixed dividends and volatile market values C. variable dividends and volatile market values D. fixed dividends and stable market valuesWhich 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 onlyGiven the following information on five stocks, construct: a. A simple price-weighted average b. A value-weighted average c. A geometric average d. What is the percentage increase in each average if the stock prices change to those in Column I? e. What is the percentage increase in each average if the stock prices change from those in the Price column to those in Column II? f. Why were the percentage changes different in parts (d) and (e)? g. If you were managing a fund and wanted a source to compare your results to, which of the three averages would you prefer to use, and why? Stock Price # of Shares I II A B C D E F $12.00 150,000 $14.00 125,000 $11.00 200,000 $ 22.00 80,000 $8.00 30,000 $29.00 140,000 $12.00 $12.00 $14.00 $14.00 $20.00 $11.00 $ 22,00 $ 22.00 $8.00 $15.00 $29.00 $29.00
