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Question
What is the estimated value of a stock, which paid a $5 dividend this year, expects dividends to grow at 6 per cent, and requires a 20 per cent return?a. $35.71
b. $37.86
c. $25.00
d. $20.38
e. $26.50
Answer
This answer is hidden. It contains 3 characters.
Related questions
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In recent years, know-your-clients (KYC) is required by international financial regulators. In the U.S., what is the act that requires financial institutions to share information about customer identities with appropriate government agencies?
a. The USA Patriot Act
b. The Sarbanes-Oxley Act
c. The 9/11 Act
d. The U.S. Treasury Department Act
e. The Gramm-Leach-Bliley Act
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A state-chartered bank which is not a member of the Federal Reserve System will
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b. FDIC
c. OCC
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a. FDIC
b. Office of Comptroller of Currency
c. Office of Thrift Supervision
d. Federal Reserve System
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a. the banks will be upset with FDIC.
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c. the moral hazard associated with deposit insurance is still present.
d. the regulator will not have to worry about banks taking excessive risk.
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If bank managers lobby to maintain America's traditional "dual banking" structure, they:
a. want an option of either federal or state bank chartering.
b. want to maintain the right to make loans and take deposits.
c. want the right to fight competition.
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The presence of moral hazard incentives
a. reduces the need for close regulatory supervision.
b. increases the need for more regulations, examinations, and regulators.
c. reduces the church attendance rate of bank managers.
d. increases the role of markets in disciplining excessive risk-taking.
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a. To promote safety and soundness.
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Financial institutions are regulated for the following reason(s):
a. they provide essential financial services to consumers and businesses.
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In a purchase and assumption of a failed bank, an assuming bank may be required to invest funds for all but one of the following reasons:
a. acquire the sound assets of the failed bank
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The maximum amount of FDIC deposit insurance per eligible retirement account is
a. $25,000
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Bank capital is the most reliable cushion that prevents a decline in asset values from threatening the integrity of bank deposits.
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A "too big to fail" policy encourages small banks to take higher risks.
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The Office of the Comptroller of the Currency (OCC) is the oldest bank regulatory agency.
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A foreign branch office of a U.S. bank is regulated by
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b. the host country bank regulation.
c. the FDIC.
d. the SEC.
e. both a and b
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All of the following are techniques reducing credit risk in international lending except
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Which of the following is associated with the currency risk of international lending by a U.S. bank?
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d. are priced relative to the LIBOR.
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a. Edge Act banks
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c. international banking facility
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a. allow international banks to branch throughout every country involved.
b. stabilize interest rates.
c. establish minimum capital ratios for international banks.
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If a hedge fund manager focused on short-selling of stocks, he/she would
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b. invest in companies with high future growth prospects.
c. borrow money to invest in stocks.
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Which of the following is not the difference between hedge funds and mutual funds?
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a. growth and income funds
b. aggressive growth funds
c. balanced funds
d. income-equity funds
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Mutual fund managers can keep their cash balances low by all but one of the following:
a. maintaining lines of credit at commercial banks
b. increasing redemption fees
c. working to maintain low NAV
d. redeeming shares with stock