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Question
If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year and the dividend payout ratio is 40%, what is the stock's current price?
A. $24.30
B. $18.00
C. $22.22
D. $40.50
Answer
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Related questions
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B. more than $20 million.
C. equal to $20 million.
D. unknown without knowing the maturity of the debt.
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Which of the following is correct for a fully depreciated asset?
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During the Financial Crisis of 2007-2009, the U.S. government bailed out all of the following firms except:
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Q:
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B. is the maximum acceptable rate of return on a project.
C. is the minimum acceptable rate of return on a project.
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Q:
Excess cash held by a firm should be:
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C. reinvested by the firm in the financial markets.
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Q:
A capital investment that generates a 10% rate of return is worthwhile if:
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B. corporate bonds of similar risk offer 11% rates of return.
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Q:
Which mutually exclusive project would you select, if both are priced at $1,000 and your required return is 15%: Project A with three annual cash flows of $1,000; or Project B, with 3 years of zero cash flow followed by 3 years of $1,500 annually?
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Q:
What is the NPV for the following project cash flows at a discount rate of 15%? C0 = ($1,000), C1 = $700, C2 = $700.
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Q:
When a project's internal rate of return equals its opportunity cost of capital, then the:
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Q:
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What should you pay for a stock if next year's annual dividend is forecast to be $5.25, the constant-growth rate is 2.85%, and you require a 15.5% rate of return?
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Q:
If the dividend yield for year 1 is expected to be 5% based on a stock price of $25, what will the year 4 dividend be if dividends grow annually at a constant rate of 6%?
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Q:
It is possible to ignore cash dividends that occur far into the future when using a dividend discount model because those dividends:
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With respect to the notion that stock prices follow a random walk, several researchers have concluded that:
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Q:
According to the semistrong form of market efficiency, when new information becomes available in the market, the related stock prices will:
A. remain unchanged because they already reflect this information.
B. accurately and rapidly adjust to include this new information.
C. adjust to accurately reflect this new information over the course of the next few days.
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