Please answer all, Thank you

1.) The stock value will be lower:

A.) the lower the market capitalization rate

B.) the higher the expected dividend growth rate

C.) the larger the expected dividend

D.) None of the above

_____ 2.) Which of the following is not one of the Four Ms that are part of Rule 1 Investing?

A.) Moat

B.) Meaning

C.) Momentum

D.) Management

_____ 3.) Which of the following is typically false for value investing?

A.) You want to buy shares of companies at attractive prices (i.e., less than their intrinsic value)

B.) The PE ratio and PEG ratio can be used to help identify undervalued stocks

C.) Value investors are often taking a follow the herd investing approach

D.) None of the above

_____ 4.) A dividend cut will result in a higher stock price _________.

A.) only if ROE is positive and greater than k

B.) only if ROE is positive and less than k

C.) only if the PVGO is negative

D.) None of the above

_____ 5.) Which of the following is not true for the price-to-sales ratio:

A.) It typically gives a larger number of companies to compare against

B.) It is used since what the P/S ratio considers cheap is consistent across industries

C.) It is used since sales are typically a less volatile measure, as compared to earnings

D.) It is used since sales are felt to be a more accurate measure of growth

E.) None of the above

_____ 6.) Which of the following is not a typical Warren Buffett stock screening characteristic?

A.) The company should have a moat around its business

B.) Look for ROE that is increasing without leverage

C.) Look for turnaround companies

D.) None of the above

_____ 7.) If the current market price for a stock is $80.00, what is the required rate of return for the stock

if the dividends one year from now are expected to be $3.40 per share and the growth rate of

dividends are expected to be 4.0% per year?

A.) 0.25%

B.) 7.40%

C.) 8.25%

D.) 8.40%

E.) None of the above

_____ 8.) The current price of a company is $28.50/share. The company earnings are $4.40/share, and

the company has a required return of 18% based on the stocks level of risk. How much of the

current price is attributed to the present value of growth opportunities (PVGO)?

A.) $0.00 or negative

B.) $3.56

C.) $4.06

D.) $28.26

E.) None of the above

_____ 9.) If the value of operations for a company is $750 million, debt is $240 million, short-term

investments are $60 million, and the amount of preferred stock is $140 million, what is the

intrinsic value of the companys stock price if the company currently has 35 million shares

outstanding?

A.) $8.86/share

B.) $12.29/share

C.) $16.86/share

D.) $20.00/share

E.) None of the above

_____ 10.) You invest using the Rule #1 investment strategy. The company you are analyzing has a

Net Operating Profit After Taxes of $750 million. If the company debt is $600 million, and the

company equity is $900 million, what is the companys Return on Invested Capital (ROIC)?

A.) 36.4%

B.) 50.0%

C.) 58.3%

D.) 200.0%

E.) None of the above