Question: Please ans this all multiple choice Identify the choice that best completes the statement or answer the question. Multiple Choice Identify the choice that best

Please ans this all multiple choice

Identify the choice that best completes the statement or answer the question.

Please ans this all multiple choice Identify the choice that best completes

Multiple Choice Identify the choice that best completes the statement or answers the question. 1. In the constant-growth dividend valuation model, the required rate of return must be dividend growth rate in order for the formula price to be meaningful. the a. less than b. equal to c. greater than I P proportional to 2. In the constant-growth dividend valuation model, the required rate of return on a common stock can be shown to be equal to the sum of the dividend yield plus a. b. Yield-to-maturity Cost of capital c. Present value yield d. Price appreciation yield 3. What is the value of a $1,000 par value Consul perpetual bond with a 6 percent coupon rate if the required rate of return is 9 percent? a. $1,000 b. $666.67 c. $333.33 d. none of the above 4. Normally the coupon rates on new bonds a. do not change over the life of the issue b. are set equal to the market rate plus an inflation premium c. float with changes in the prime rate d. are set just over the prevailing prime rate 5. Hi Glo's common stock sells for $23.50 and its earnings are expected to grow at a rate of 12% annually. What is the current dividend (Do) for an investor who requires a 15% return? $0.71 b. $0.63 c. $0.34 d. $0.31 sblely memed ative ledW .62 in beeblo pnod pe :5 1 6. The P/E ratio indicates a. how much investors are willing to pay for $1 of current earnings b. the current yield c. the current price d. how risky the stock is

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