公司理財(cái)精要第七章題庫(kù)

1、chapter 07 - equity markets and stock valuationchapter 07equity markets and stock valuation multiple choice questions1.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

2、 of change in the annual dividend amount?a.stock pricing modelb.equity pricing modelc.capital gain modeld.dividend growth modele.present value model2.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 d

3、ivided 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.3.the

4、 capital gains yield equals which one of the following?a.total yieldb.current discount ratec.market rate of returnd.dividend yielde.dividend growth rate4.which one of the following types of securities has no priority in a bankruptcy proceeding?a.convertible bondb.senior debtc.common stockd.preferred

5、 stocke.straight bond5.mary owns 100 shares of stock. each share entitles her to one vote per open seat on the board of directors. assume there are 3 open seats in the current election and mary casts all 300 of her votes for a single candidate. what is the term used to describe this type of voting?a

6、.proxyb.aggregatec.cumulatived.straighte.condensed6.there are two open seats on the board of directors. if two separate votes occur to elect the new directors, the firm is using a type of voting that is best described as _ voting.a.simultaneousb.straightc.proxyd.cumulativee.sequential7.kate could no

7、t attend the last shareholders meeting and thus she granted the authority to vote on her behalf to the managers of the firm. which one of the following terms is used to describe the method by which kates shares were voted?a.straightb.cumulativec.consent-formd.proxye.in absentia8.dividends are best d

8、efined as:a.cash payments to shareholders.b.cash payments to either bondholders or shareholders.c.cash or stock payments to shareholders.d.cash or stock payments to either bondholders or shareholders.e.distributions of stock to current shareholders.9.which one of the following generally pays a fixed

9、 dividend, receives first priority in dividend payment, and maintains the right to a dividend payment, even if that payment is deferred?a.cumulative commonb.noncumulative commonc.noncumulative preferredd.cumulative preferrede.senior common10.newly issued securities are sold to investors in which one

10、 of the following markets?a.proxyb.stated valuec.insided.secondarye.primary11.what is the market called that allows shareholders to resell their shares to other investors?a.primaryb.proxyc.secondaryd.insidee.initial12.an agent who buys and sells securities from inventory is called a:a.floor trader.b

11、.dealer.c.commission broker.d.broker.e.floor broker.13.a broker is an agent who:a.trades on the floor of an exchange for himself or herself.b.buys and sells from inventory.c.offers new securities for sale to dealers only.d.who is ready to buy or sell at any time.e.brings buyers and sellers together.

12、14.any person who owns a license to trade on the nyse is called a:a.dealer.b.floor trader.c.specialist.d.member.e.proxy.15.a person who executes customer orders to buy and sell securities on the floor of the nyse is called a:a.floor trader.b.specialist.c.runner.d.commission broker.e.market maker.16.

13、a specialist is a(n):a.employee who executes orders to buy and sell for clients of his or her brokerage firm.b.individual who trades on the floor of an exchange for his or her personal account.c.nyse member who functions as a dealer for a limited number of securities.d.broker who buys and sells secu

14、rities from a market maker.e.trader who only deals with primary offerings.17.an individual who executes buy and sell orders on the floor of an exchange for a fee is called a:a.floor broker.b.specialist.c.floor trader.d.proxy.e.flow specialist.18.the electronic system that transmits buy and sell orde

15、rs directly to a specialist on the floor of the nyse is called:a.nasdaq.b.superdot.c.ticker.d.ecn.e.ordflow.19.the owner of a trading license who trades on the floor of the nyse for his or her personal account is called a(n):a.specialist.b.independent broker.c.floor trader.d.stand-alone agent.e.deal

16、er.20.the stream of customer instructions to buy and sell securities is called the:a.order flow.b.market maker.c.execution stream.d.operations flow.e.buyers stream.21.the specific location on the floor of an exchange where a particular security is traded is called a:a.box office.b.figure 6.c.special

17、ists post.d.trading booth.e.seat.22.inside quotes are defined as the:a.bid and asked prices presented by nyse specialists.b.last bid and asked price offered prior to the market close.c.lowest asked and highest bid offers.d.daily opening bid and asked quotes.e.last traded bid and asked prices.23.whic

18、h one of the following is a web site that enables lester to sell his shares of abc stock directly to marti?a.superdotb.postc.ecnd.seate.enet24.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 th

19、e market rate of returnd.decrease in the expected dividend for next yeare.increase in the capital gains yield25.the price of a stock at year 4 can be expressed as:a.d0 / (r + g4).b.d0 (1 + r)5.c.d1 (1 + r)5.d.d4/(r-g).e.d5/(r-g).26.delfinos expects to pay an annual dividend of $1.50 per share next y

20、ear. what is the anticipated dividend for year 5 if the firm increases its dividend by 2 percent annually?a.$1.50 (1.02)1b.$1.50 (1.02)2c.$1.50 (1.02)3d.$1.50 (1.02)4e.$1.50 (1.02)527.the required return on a stock is equal to which one of the following if the dividend on the stock decreases by 1 pe

21、rcent per year?a.(p0/d1)-gb.(d1/p0)/gc.dividend yield + capital gains yieldd.dividend yield - capital gains yielde.dividend yield capital gains yield28.donuts delite just paid an annual dividend of $1.10 a share. the firm expects to increase this dividend by 8 percent per year the following 3 years

22、and then decrease the dividend growth to 2 percent annually thereafter. which one of the following is the correct computation of the dividend for year 7?a.($1.10) (1.08 3) (1.02 4)b.($1.10) (1.08 3) (1.02 3)c.($1.10) (1.08)3 (1.02)4d.($1.10) (1.08)3 (1.02)3e.($1.10) (1.08)3 (1.02)229.aardvark, inc.

23、pays a constant annual dividend. at the end of trading on wednesday, the price of its stock was $28. at the end of trading on the following day, the stock price was $27. as a result of the decline in the stocks price, the dividend yield _ while the capital gains yield _.a.remained constant; remained

24、 constantb.increased; remained constantc.increased; increasedd.decreased; remained constante.decreased; decreased30.which one of the following must equal zero if a firm pays a constant annual dividend?a.dividend yieldb.capital gains yieldc.total returnd.market value per sharee.book value per share31

25、.the dividend growth model can be used to value the stock of firms which pay which type of dividends? i. constant annual dividendii. annual dividend with a constant increasing rate of growthiii. annual dividend with a constant decreasing rate of growthiv. zero dividenda.i onlyb.ii onlyc.ii and iii o

26、nlyd.i, ii, and iii onlye.i, ii, iii, and iv32.kate owns a stock with a market price of $31 per share. this stock pays a constant annual dividend of $0.60 per share. if the price of the stock suddenly increases to $36 a share, you would expect the: i. dividend yield to increase.ii. dividend yield to

27、 decrease.iii. capital gains yield to increase.iv. capital gains yield to decrease.a.i onlyb.ii onlyc.iii onlyd.i and iii onlye.ii and iv only33.computing the present value of a growing perpetuity is most similar to computing the current value of which one of the following?a.non-dividend-paying stoc

28、kb.stock with a constant dividendc.stock with irregular dividendsd.stock with a constant growth dividende.stock with growing dividends for a limited period of time34.jensen shipping has four open seats on its board of directors. how many shares will a shareholder need to control to ensure that his o

29、r her candidate is elected to the board given the fact that the firm uses straight voting? assume one share equals one vote.a.20 percent of the shares plus one voteb.25 percent of the shares plus one votec.1/3 of the shares plus one voted.50 percent of the shares plus one votee.51 percent of the sha

30、res plus one vote35.gleason, inc. elects its board of directors on a staggered basis using cumulative voting. this implies that:a.if there are two open seats, then the candidate with the highest number of votes and the candidate with the lowest number of votes will be selected.b.the candidates for t

31、he open seats are voted for in individual elections.c.all open positions are filled with one round of voting, assuming there are no tie votes.d.shareholders can accumulate their votes over multiple years and cast all those votes in one election.e.the firms entire board of directors is elected annual

32、ly in one combined election.36.which one of the following statements is correct?a.from a legal perspective, preferred stock is a form of corporate equity.b.all classes of stock must have equal voting rights per share.c.common shareholders elect the corporate directors while the preferred shareholder

33、s vote on mergers and acquisitions.d.dividends are tax-free income for individual investors.e.shareholders prefer noncumulative dividends over cumulative dividends.37.which one of the following statements is correct?a.both preferred stock and corporate bonds can be callable.b.both preferred stock an

34、d corporate bonds have a stated liquidation value of $1,000 each.c.interest payments to bondholders as well as dividend payments to preferred shareholders are tax deductible expenses for the issuing firm.d.bondholders generally receive a fixed payment while preferred shareholders receive a variable

35、payment.e.preferred shareholders receive preferential treatment over bondholders in a liquidation.38.if shareholders are granted a preemptive right they will:a.be given the choice of receiving dividends either in cash or in additional shares of stock.b.be paid dividends prior to the preferred shareh

36、olders during the preemptive period.c.be entitled to two votes per share of stock.d.be able to choose the timing and amount of any future dividends.e.have priority in the purchase of any newly issued shares.39.on which one of the following dates do dividends become a liability of the issuer for acco

37、unting purposes?a.first day of the fiscal year in which the dividend is expected to be paidb.twelve months prior to the expected dividend payment datec.on the declaration dated.on the date of recorde.on the date of payment40.dividends are which one of the following?a.payable at the discretion of a f

38、irms presidentb.treated as a tax-deductible expense to the paying firmc.paid out of aftertax profitsd.paid to holders of record as of the declaration datee.only partially taxable to high-income individual shareholders41.you have agreed to pay a five percent commission to your best friend if he can l

39、ocate a buyer for your car. this arrangement is most similar to the compensation arrangement for which one of these individuals who is involved with the stock market?a.specialistb.floor traderc.market makerd.commission brokere.dealer42.to be a member of the nyse, you must:a.be a primary dealer.b.buy

40、 a seat.c.own a trading license.d.be registered as a floor trader.e.be a specialist.43.which one of the following players on the floor of the nyse is obligated to maintain a fair, orderly market for a limited number of securities?a.specialistb.floor traderc.$2 brokerd.commission brokere.floor broker

41、44.the nyse:a.presently conducts all of its trading through superdot.b.is a dealer market.c.is in the business of attracting order flow.d.is solely a primary market.e.is based on a multiple market maker system.45.which one of the following parties on the nyse floor post bid and asked prices?a.floor

42、tradersb.specialistsc.floor brokersd.commission brokerse.fee brokers46.many of the smaller sell orders sent to the floor of the nyse are:a.handled by the floor traders.b.purchased by the commission brokers.c.electronically transmitted to the specialists.d.executed on an ecn.e.executed in the primary

43、 market.47.if a trade is made in the crowd, the trade has occurred:a.between a broker and a specialist.b.between two brokers.c.electronically on nasdaq.d.on superdot.e.on an ecn.48.the more actively traded large companies that are listed on nasdaq are traded in which one of the nasdaq markets?a.nati

44、onalb.capitalc.regionald.global selecte.global49.which one of the following features applies to nasdaq but not the nyse?a.trading in the crowdb.multiple market maker systemc.superdotd.broker markete.physical trading floor50.companies can list their stock on which one of the following without having

45、to meet listing requirements or filing financial statements with the sec?a.nasdaq capital marketb.over-the-counter bulletin boardc.pink sheetsd.nasdaq global markete.nyse51.keller metals common stock is selling for $36 a share and has a dividend yield of 3.2 percent. what is the dividend amount?a.$0

46、.32b.$1.15c.$3.49d.$11.25e.$11.5252.the glass ceiling paid an annual dividend of $2.20 per share last year. management just announced that future dividends will increase by 2.8 percent annually. what is the amount of the expected dividend in year 5?a.$2.39b.$2.41c.$2.46d.$2.53e.$2.5853.the pancake h

47、ouse pays a constant annual dividend of $1.25 per share. how much are you willing to pay for one share if you require a 15 percent rate of return?a.$7.86b.$8.33c.$10.87d.$11.04e.$11.3854.shoreline foods pays a constant annual dividend of $1.60 a share and currently sells for $28.50 a share. what is

48、the rate of return?a.4.56 percentb.5.39 percentc.5.61 percentd.6.63 percente.6.91 percent55.the common stock of green garden flowers is selling for $24 a share. the company pays a constant annual dividend and has a total return of 3.8 percent. what is the amount of the dividend?a.$0.38b.$0.76c.$0.91

49、d.$1.38e.$1.5456.healthy foods just paid its annual dividend of $1.45 a share. the firm recently announced that all future dividends will be increased by 2.8 percent annually. what is one share of this stock worth to you if you require a 14 percent rate of return?a.$12.56b.$12.95c.$13.31d.$13.68e.$1

50、4.0757.plastics, inc. will pay an annual dividend of $1.85 next year. the company just announced that future dividends will be increasing by 2.25 percent annually. how much are you willing to pay for one share of this stock if you require a 16 percent return?a.$13.45b.$13.61c.$13.76d.$14.02e.$14.455

51、8.the printing company stock is selling for $32.60 a share based on a 14 percent rate of return. what is the amount of the next annual dividend if the dividends are increasing by 2.5 percent annually?a.$3.48b.$3.52c.$3.57d.$3.66e.$3.7559.the common stock of mid-towne movers is selling for $33 a shar

52、e and has a 9 percent rate of return. the growth rate of the dividends is 1 percent annually. what is the amount of the next annual dividend?a.$2.58b.$2.61c.$2.64d.$2.67e.$2.7060.delphins marina is expected to pay an annual dividend of $0.58 next year. the stock is selling for $8.53 a share and has

53、a total return of 12 percent. what is the dividend growth rate?a.3.82 percentb.4.03 percentc.4.28 percentd.5.20 percente.5.49 percent61.klaus toys just paid its annual dividend of $1.40. the required return is 16 percent and the dividend growth rate is 2 percent. what is the expected value of this s

54、tock five years from now?a.$11.04b.$11.26c.$11.67d.$12.41e.$12.5862.this morning, you purchased a stock that will pay an annual dividend of $1.90 per share next year. you require a 12 percent rate of return and the annual dividend increases at 3.5 percent annually. what will your capital gain be on

55、this stock if you sell it three years from now?a.$2.43b.$2.51c.$2.63d.$2.87e.$2.9263.blackwell ink is losing significant market share and thus its managers have decided to decrease the firms annual dividend. the last annual dividend was $0.90 a share but all future dividends will be decreased by 5 percent annually. what is a share of this stock worth today at