公司理财期末789选择习题.doc

1.?What is the name given to the model that computes the present value of a stock by dividing next years annual dividend amount by the difference between the discount rate and the rate of change in the annual dividend amount??A.?Stock pricing modelB.?Equity pricing modelC.?Capital gain modelD.?Dividend growth modelE.?Present value model Refer to section 7.1. ? Blooms: KnowledgeDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend growth model? 2.?The dividend yield is defined as:?A.?the current annual cash dividend divided by the current market price per share.B.?the current annual cash dividend divided by the current book value per share.C.?next years expected cash dividend divided by the current market price per share.D.?next years expected cash dividend divided by the current book value per share.E.?next years expected cash dividend divided by next years expected market price per share. Refer to section 7.1. ? Blooms: KnowledgeDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Dividend yield? 3.?The capital gains yield equals which one of the following??A.?Total yieldB.?Current discount rateC.?Market rate of returnD.?Dividend yieldE.?Dividend growth rate Refer to section 7.1. ? Blooms: KnowledgeDifficulty: BasicLearning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.Section: 7.1Topic: Capital gains yield? 4.?Which one of the following types of securities has no priority in a bankruptcy proceeding??A.?Convertible bondB.?Senior debtC.?Common stockD.?Preferred stockE.?Straight bond 24.?Which one of the following will increase the current value of a stock??A.?Decrease in the dividend growth rateB.?Increase in the required returnC.?Increase in the market rate of returnD.?Decrease in the expected dividend for next year