Question: 1.In dividend valuation models, if all other things are equal, the most valuable company is one with elect one: a. high growth b. zero growth

 1.In dividend valuation models, if all other things are equal, the

1.In dividend valuation models, if all other things are equal, the most valuable company is one with elect one: a. high growth b. zero growth c. low growth d. uncertain future 2.The value of a company paying no dividend is Select one: a. low b. uncertain c. high d. zero 3.The price per share of a company expected to pay a dividend of $10 every year forever is The discount rate is 10%. Select one: a. b. 2 c. 100 d. 300 4.A company just paid a dividend of $3. The company expects to raise the dividend by 5% every- year. At the discount rate of 10%, its share price is- Select one: a. $31.5 b. $30 c. $63 d. $60 5. For a given company, which capital is the riskiest? a. all capitals are equally risky c. common stock Select one: preferred stock d. debt 6. For a corporation, which of the following corporate capital is income tax deductible from the IRS? Select one: a. debt b. preferred stock c. all of them d. common stock 7.The riskier the capital, the lower is its cost. Select one: True False

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