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Q18. Given the following information, compute the implied dividend growth rate.
- Profit margin = 10.0%
- Total asset turnover = 2.0 times
- Financial leverage = 1.5 times
- Dividend payout ratio = 40.0%
A) 18.0%.
B) 4.5%.
C) 12.0%.
Q19. If the return on equity for a firm is 15% and the retention rate is 40%, the firm’s sustainable growth rate is closest to:
A) 15%.
B) 6%.
C) 9%.
Q20. Which of the following statements concerning security valuation is least accurate?
A) The top-down approach to security valuation starts with an examination of the economy of each country.
B) The retention rate in the dividend discount model is one minus the growth rate.
C) A common stock with no growth in the dividend is valued like preferred stock.
Q21. All else equal, the price-to-earnings (P/E) ratio of a stable firm will increase if the:
A) dividend payout is decreased.
B) long-term growth rate is decreased.
C) ROE is increased.
Q22. Which of the following is NOT an assumption of the constant growth dividend discount model (DDM)?
A) Dividend payout is constant.
B) The growth rate of the firm is higher than the overall growth rate of the economy.
C) ROE is constant.
Q23. REM Corp.’s return on equity (ROE) is 19.5% and its dividend payout rate is 45%. What is the company’s implied dividend growth rate?
A) 10.73%.
B) 19.5%.
C) 8.78%.
Q24. In its latest annual report, a company reported the following:
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Net income |
= $1,000,000 |
|
Total equity |
= $5,000,000 |
|
Total assets |
= $10,000,000 |
|
Dividend payout ratio |
= 40% |
Based on the sustainable growth model, the most likely forecast of the company’s future earnings growth rate is:
A) 12%.
B) 6%.
C) 8%.
Q25. Assuming past investments are stable and earnings are calculated to allow for maintenance of past earnings power, the firm’s expected dividend growth rate can be estimated by its:
A) price to earnings ratio.
B) risk premium.
C) sustainable growth rate.
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发表于 2009-3-2 14:28
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