The beta risk of a share reflects the sensitivity of cash flow, earnings, and the share price to what sort of movements? Select one: a. Industry-wide market movements. b. Capital market movements. c. Economy-wide market movements. d. All of these.

Apart from using PE ratio, what is another way of valuing the stock price? if we have the EPS, Share Price, Dividend Per Share, ROE and the discount rate (R).  And what are the assumptions and the limitations of this model? Is it the PEG ratio or not??

The Expected Rate of Profit Formula looks at:     A. Expected Profit & Money Invested   B. Common Stock & Preferred Stock   C. Expected Profit & Bonds   D. All of the above

Reverse engineering share prices is an exercise in deductive reasoning. If we assume market price reflects share value, then through reverse engineering we can infer what the market assumes about   a. the expected rate of return on equity capital, holding expected profitability and long-run growth constant.     b. the expected profitability, holding the expected rate of return on equity capital and long-run growth constant.     c. the expected long-run growth, holding the expected rate of return on equity capital and expected profitability constant.

What are the two sources, or components of return for stock?

1. Are the firm’s expected future earnings important in determining a stock’s investment merits? Discuss how stock valuation relies on these and other future estimates

Dividend policy may be affected by firm level as well as macroeconomic level factors. Select FIVE variables (at least 2 firm-level factors/variables and at least 2 macroeconomic factors/variables) from the list shown below. Explain and discuss the predicted impact of selected factors on dividend policy using relevant theories. i.e. what theories help to predict the positive or negative impact on the dividend payout and why. FIRM-LEVEL FACTOR/VARIABLE Asset growth rate Positive NPV investment opportunities Capital intensity of the production process Free cash flow generated Number of individual shareholders Relative tightness of ownership coalition Size of largest block holder MACROECONOMIC FACTOR/VARIABLE Transaction costs of security issuance Personal tax rates on dividend income Personal tax rates on capital gain Importance of institutional investors Corporate governance power of institutional investors Capital market, relative to intermediated (bank) financing

When the share price series breaks through the moving average line from below, what would a technical analyst probably suggest?

Which statement is false regarding the Capital Asset Pricing Model?      A. The beta coefficient of a stock is constant.   B. The risk free rate is usually based on the treasury bill yield.   C. Market risk premium is the difference between market return and the risk free rate.   D. The cost of retained earnings is equal to the cost of new shares issued.