1、Chapter09-StockValuationChapter09HowtoValueStocks MultipleChoiceQuestions 1. Thestockvaluationmodelthatdeterminesthecurrentstockpricebydividingthenextannualdividendamountbytheexcessofthediscountratelessthedividendgrowthrateiscalledthe_____model. A. z
3、 Therateatwhichastock'spriceisexpectedtoappreciate(ordepreciate)iscalledthe_____yield. A. currentB. totalC. dividendD. capitalgainsE. earnings 4. Aformofequitywhichreceivesnopreferentialtreatmentineitherthepaymentofdividendsorinbankruptcydistribution
4、siscalled_____stock. A. dualclassB. cumulativeC. deferredD. preferredE. common 9-51Chapter09-StockValuation5. Paymentsmadebyacorporationtoitsshareholders,intheformofeithercash,stockorpaymentsinkind,arecalled: A. retainedearnings.B. netincome.C. divid
5、ends.D. redistributions.E. infusedequity. 6. Theconstantdividendgrowthmodelis: A. generallyusedinpracticebecausemoststockshaveaconstantgrowthrate.B. generallyusedinpracticebecausethehistoricalgrowthrateofmoststocksisconstant.C. generallynotusedinprac
7、ssumesthatdividendsincreaseataconstantrateforever.II.canbeusedtocomputeastockpriceatanypointoftime.III.statesthatthemarketpriceofastockisonlyaffectedbytheamountofthedividend.IV.considerscapitalgainsbutignoresthedividendyield. A. IonlyB. IIonlyC. IIIa
8、ndIVonlyD. IandIIonlyE. I,II,andIIIonly 8. Theunderlyingassumptionofthedividendgrowthmodelisthatastockisworth: A. thesameamounttoeveryinvestorregardlessoftheirdesiredrateofreturn.B. thepresentvalueofthefutureincomewhichthestockgenerates.C. anamountco