## Identify four documents used in the delivery process in home trade

Identify four documents used in the delivery process in home trade. 4mks 1. Outline four reasons for establishment of a business enterprise. 4mks 3. Outline three basic qualities of an office worker. 3mks 4.  Outline four ways in which the government influences the quantity of a commodity supplied. 4mks 5. Highlight four factors that may be used in […]

## Large-cap stocks had the nominal rates of return of 13.12 percent. The rate of inflation during the last year was 2.26 percent.

Large-cap stocks had the nominal rates of return of 13.12 percent. The rate of inflation during the last year was 2.26 percent. What is the real rate of return for large-cap stocks? Round the answer to two decimal places in percentage form. (Write the percentage sign in the “units” box)

## In an efficient market, when should the stock price react to the value consequences of a dividend change? Discuss the effect both on the total return and on the capital gain. Which should be larger?

In an efficient market, when should the stock price react to the value consequences of a dividend change? Discuss the effect both on the total return and on the capital gain. Which should be larger?

## Assume that dividends are taxed at your marginal tax rate of 28% while capital gains are taxed at 15%.

Assume that dividends are taxed at your marginal tax rate of 28% while capital gains are taxed at 15%. How much more will you net if you earn \$1,000 in capital gains than if the \$1,000 were dividend income? \$570 \$13 \$114 \$130

## The following variables affect the price / earnings ratio, EXCEPT:Market price of the stockEarnings per share Net income

The following variables affect the price / earnings ratio, EXCEPT:Market price of the stockEarnings per share Net income

## An issue of preferred stock that pays an annual dividend of \$6 is selling for \$32 a share. The annual return on this investment is 8.75% 18.75% 5.33% 4.33%

An issue of preferred stock that pays an annual dividend of \$6 is selling for \$32 a share. The annual return on this investment is 8.75% 18.75% 5.33% 4.33%

## The cost of equity capital for the Houck Corporation is 18%. If the stock offers a dividend yield of 7%, what is the implied expected growth rate?

The cost of equity capital for the Houck Corporation is 18%. If the stock offers a dividend yield of 7%, what is the implied expected growth rate? 25% 9% 2.4% None of the above

## Common stocks do not have a term to maturity. Therefore, stocks that do not pay dividends do not have any value. True or false?

Common stocks do not have a term to maturity. Therefore, stocks that do not pay dividends do not have any value. True or false?

## A firm has 500 stockholders, each of whom own \$100 in shares. If the firm uses \$10,000 to repurchase shares, how many stockholders would remain, and what would be the value of their shares?

A firm has 500 stockholders, each of whom own \$100 in shares. If the firm uses \$10,000 to repurchase shares, how many stockholders would remain, and what would be the value of their shares? 400 shareholders would each own shares worth \$100 400 shareholders would each own shares worth \$120 400 shareholders would each own shares […]

## The common stock of Average Corporation is selling for \$10 a share and is expected to pay a dividend of \$0.50 a share next year. If dividends are expected to grow at a constant rate of 4% indefinitely, what is the market requiring as a return on this company’s stock?

The common stock of Average Corporation is selling for \$10 a share and is expected to pay a dividend of \$0.50 a share next year. If dividends are expected to grow at a constant rate of 4% indefinitely, what is the market requiring as a return on this company’s stock? 1.4% 4.0% 5.0% 9.0%