PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Textbook Question
Chapter 4, Problem 15PS
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The cost of preferred stock:
a.
is equal to the dividend yield
b.
is independent of the stock's price
c.
is equal to the YTM
d.
depends on dividend's growth rate
3. Which of the following is known as current stock yield?
A. Market Value
B. Par Value
C. Stock Market
D. Stock Yield Ratio
САPITAL
NOMINAL
APPRECIATION +
RATE OF
DIVIDEND INCOME
RETURNS
PURCHASE PRICE OF
STOCKS
Chapter 4 Solutions
PRIN.OF CORPORATE FINANCE
Ch. 4 - Stock markets True or false? a. The bid price is...Ch. 4 - Stock quotes a. I would like to sell 1000 shares...Ch. 4 - Stock quotes Here is a small part of the order...Ch. 4 - Stock quotes Go to finance.yahoo.com and get...Ch. 4 - Valuation by comparables Look up P/E and P/B...Ch. 4 - Dividend discount model True or false? a. All...Ch. 4 - Dividend discount model Respond briefly to the...Ch. 4 - Dividend discount model Company X is expected to...Ch. 4 - Dividend discount model Company Y does not plow...Ch. 4 - Constant-growth DCF model Company Zs earnings and...
Ch. 4 - Prob. 11PSCh. 4 - Constant-growth DCF model Pharmecology just paid...Ch. 4 - Prob. 13PSCh. 4 - Cost of equity capital Under what conditions does...Ch. 4 - Cost of equity capital Each of the following...Ch. 4 - Two-stage DCF model Company Z-prime is like Z in...Ch. 4 - Two-stage DCF model Consider the following three...Ch. 4 - Two-stage DCF model Company Qs current return on...Ch. 4 - Two-stage DCF model Compost Science Inc. (CSI) is...Ch. 4 - Growth opportunities If company Z (see Problem 10)...Ch. 4 - Growth opportunities Alpha Corps earnings and...Ch. 4 - Prob. 24PSCh. 4 - Prob. 25PSCh. 4 - Prob. 26PSCh. 4 - Horizon value Suppose the horizon date is set at a...Ch. 4 - Valuing a business Permian Partners (PP) produces...Ch. 4 - Valuing a business Construct a new version of...Ch. 4 - Valuing a business Mexican Motors market cap is...Ch. 4 - Valuing a business Phoenix Corp. faltered in the...Ch. 4 - Constant-growth DCF formula The constant-growth...Ch. 4 - DCF valuation Portfolio managers are frequently...Ch. 4 - Valuing a business Construct a new version of...
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- Market capitalisation is equal to O a. Number of shares x EPS O b. Number of shares x Book value O c. Number of shares x Market price O d. Number of shares x Face valuearrow_forwardWhen liabilites increase and stock holder equity decreases, what is the total assets? shouldn't it be total liabilites plus total stock holder equity=total assets?arrow_forwardWhich of the following is generally excluded in estimating the weighted average cost of capital? c. Preferred Share d. Ordinary Equity a. Short-term debt b. Long-term debtarrow_forward
- Return formula for common stock?arrow_forwardCalculation of which if the following metrics require knowledge of the company’s share price? Choose two A) return on equity B) dividend yield C) dividend payout ratio D) ratio of market-to-book value E) leverage ratioarrow_forwardThe dividend yield rate is equal to the dividends per share divided by the par value per share of common stock. Group of answer choices True Falsearrow_forward
- How the dividend is related to the market value of shares? [A] interest coverage ratio [B] fixed dividend coverage ratio [C] debt service coverage ratio [D] dividend yield ratioarrow_forwardWhat is the estimated cost of equity using thedividend growth approach?arrow_forwardWhy are stocks categorized in terms of market capitalization?arrow_forward
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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY