Answer all questions please

QUESTION 8

The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased and sold.

True

False

2 points

QUESTION 9

The constant growth DCF model used to evaluate the prices of common stocks is conceptually similar to the model used to find the price of perpetual preferred stock or other perpetuities.

True

False

QUESTION 1

Projected free cash flows should be discounted at the firm's weighted average cost of capital to find the firms total corporate value.

True

False

QUESTION 11

Which of the following statements is CORRECT?

	A.	Two firms with the same expected dividend and growth rate must also have the same stock price.
	B.	The price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate.
	C.	The constant growth model takes into consideration the capital gains investors expect to earn on a stock.
	D.	It is appropriate to use the constant growth model to estimate a stock's value even if its growth rate is never expected to become constant.