1. Ross's common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10% per year. What's the firm's cost of common stock using DCF approach?
9.5%
10.0%
15.5%
16.5%
2. The performance of income measures cash flows of a value in relation to any price, as the sales price or current market price negotiable, but they are not liquids.
to. Correct
b. Incorrect
3. A bond purchased at par and kept until maturity provides a yield in the form of cash flow, so it has a change in the price.
to. Correct
b. Incorrect
4. With a dividend of $3.00 per year, stock market price of $10.50 and purchase price of $13.00 cash flow performance would be
to. 6.85%
b. 5.60%
c. 4.75%
d. 3.85%