The.. value.. of.. an.. ordinary.. share.. Select one or more: a. Will fall if future profit forecasts are higher than expected b. Is always at its fundamental value c. Can rise and fall along with market sentiment d. Will rise if a firm introduces some cost saving innovation

Please help by telling me the correct awnser   The value of an ordinary shareSelect one or more:a. Will fall if future profit forecasts are higher than expectedb. Is always at its fundamental valuec. Can rise and fall along with market sentimentd. Will rise if a firm introduces some cost saving innovation

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? What can be said about the dividend growth model? Similarly what can be said about the capital asset pricing model?

maining: 1:17:44 Save ns Which of the following is NOT one of the steps taken in the financial planning process? O a. Consult with key competitors about the optimal set of prices to charge, i.e., the prices that will maximize profits for our firm and its competitors. O b. Projected ratios are calculated and analyzed. O c. Assumptions are made about future levels of sales, costs, and interest rates for use in the forecast. O d. Develop a set of projected financial statements. O e. The entire financial plan is reexamined, assumptions are reviewed, and the management team considers how additional changes in operations might improve results. Type here to search O N

The lowest rate of return possible is:a. 0%b. -∞c. -100%d. the company’s MARR

If the yield curve is upward sloping: Hint: When there is an increase in the demand for an asset, the price of the asset goes up. You expect returns from investing in such ("higher-priced") asset to be lower in the future. Conversely, when there is a decrease in the demand for an asset, the price of the asset goes down. You expect returns from investing in such ("lower-priced") asset to be higher in the future. O investors expect the short-term interest rates to fall in the future. investors often shift their investment holdings away from long-term securities. investors often short sell short-term securities. investors often shift their investment holdings away from short-term securities.

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.

7. More on ratio analysis Analysts and investors often use return on equity (ROE) to compare profitability of a company with other firms in the industry. ROE is considered a very important measure, and managers strive to make the company’s ROE numbers look good. If a firm takes steps that increase its expected future ROE, its stock price will    increase.   Based on your understanding of the uses and limitations of ROE, a rational investor is likely to prefer an investment option that has: High ROE and high risk   High ROE and low risk     Suppose you are trying to decide whether to invest in a company that generates a high expected ROE, and you want to conduct further analysis on the company’s performance. If you wanted to conduct a comparative analysis for the current year, you would: Compare the firm’s financial ratios for the current year with its ratios in previous years   Compare the firm’s financial ratios with other firms in the industry for…

Indicate whether the following statements are true or false. If the statementis false, explain why.f. If a firm follows a residual dividend policy then, holding all else constant, its dividend payout will tend to rise whenever the firm’s investment opportunities improve.