PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 4, Problem 15PS
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Students have asked these similar questions
n the formula ke >= (D1/P0) + g, what does (D1/P0) represent?
Select one:
a.
The expected capital gains yield from a common stock
b.
The interest payment from a bond
c.
The expected dividend yield from a common stock
d.
The dividend yield from a preferred stock
The cost of preferred stock:
a.
is equal to the dividend yield
b.
is independent of the stock's price
c.
is equal to the YTM
d.
depends on dividend's growth rate
What is the Cost of Equity?What is the Weighted Average Cost of Capital?WACC
Chapter 4 Solutions
PRIN.OF CORPORATE FINANCE
Ch. 4 - Stock markets True or false? a. The bid price is...Ch. 4 - Stock quotes a. I would like to sell 1000 shares...Ch. 4 - Stock quotes Here is a small part of the order...Ch. 4 - Stock quotes Go to finance.yahoo.com and get...Ch. 4 - Valuation by comparables Look up P/E and P/B...Ch. 4 - Dividend discount model True or false? a. All...Ch. 4 - Dividend discount model Respond briefly to the...Ch. 4 - Dividend discount model Company X is expected to...Ch. 4 - Dividend discount model Company Y does not plow...Ch. 4 - Constant-growth DCF model Company Zs earnings and...
Ch. 4 - Prob. 11PSCh. 4 - Constant-growth DCF model Pharmecology just paid...Ch. 4 - Prob. 13PSCh. 4 - Cost of equity capital Under what conditions does...Ch. 4 - Cost of equity capital Each of the following...Ch. 4 - Two-stage DCF model Company Z-prime is like Z in...Ch. 4 - Two-stage DCF model Consider the following three...Ch. 4 - Two-stage DCF model Company Qs current return on...Ch. 4 - Two-stage DCF model Compost Science Inc. (CSI) is...Ch. 4 - Growth opportunities If company Z (see Problem 10)...Ch. 4 - Growth opportunities Alpha Corps earnings and...Ch. 4 - Prob. 24PSCh. 4 - Prob. 25PSCh. 4 - Prob. 26PSCh. 4 - Horizon value Suppose the horizon date is set at a...Ch. 4 - Valuing a business Permian Partners (PP) produces...Ch. 4 - Valuing a business Construct a new version of...Ch. 4 - Valuing a business Mexican Motors market cap is...Ch. 4 - Valuing a business Phoenix Corp. faltered in the...Ch. 4 - Constant-growth DCF formula The constant-growth...Ch. 4 - DCF valuation Portfolio managers are frequently...Ch. 4 - Valuing a business Construct a new version of...
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- 3. Which of the following is known as current stock yield? A. Market Value B. Par Value C. Stock Market D. Stock Yield Ratioarrow_forwardWhat is the cost of equity based on the dividend growth model? What is the cost of equity based on the security market line? What market weights should be given to the various capital components in the weighted average cost of capital computation What is the weighted average cost of capital using the cost equity calculated based on CAPM?arrow_forwardСАPITAL NOMINAL APPRECIATION + RATE OF DIVIDEND INCOME RETURNS PURCHASE PRICE OF STOCKSarrow_forward
- The expected return on a stock is called the __ from the investor's perspective, and the __ from the company's perspective. A. required return; cost of equity B. required return; cost of capital C. excess return; cost of equity D. excess return; cost of capitalarrow_forwardMarket capitalisation is equal to O a. Number of shares x EPS O b. Number of shares x Book value O c. Number of shares x Market price O d. Number of shares x Face valuearrow_forwardWhen liabilites increase and stock holder equity decreases, what is the total assets? shouldn't it be total liabilites plus total stock holder equity=total assets?arrow_forward
- Which of the following is generally excluded in estimating the weighted average cost of capital? c. Preferred Share d. Ordinary Equity a. Short-term debt b. Long-term debtarrow_forwardIs this a right formula? Market Value of Equity = Market capitalization - cash and investment + market Debt Valuearrow_forwardReturn on equity formula?arrow_forward
- Which financial ratio does the DuPont equation help to explain? ROA (return on assets) ROE (return on equity) EPS (earnings per share) DPS (dividends per share)arrow_forwardAn increase in which of the following will increase the return on equity, all else constant?I. salesII. net incomeIII. depreciationIV. total equityarrow_forwardReturn formula for common stock?arrow_forward
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