文档来源为:从网络收集整理.word版本可编辑.欢迎下载支持.
CHAPTER 6 Stock Valuation
I. DEFINITIONS
GROWING PERPETUITY
a 1. An asset characterized by cash flows that increase at a constant rate forever is called a: a. growing perpetuity. b. growing annuity. c. common annuity. d. perpetuity due. e. preferred stock. Difficulty level: Easy
DIVIDEND GROWTH MODEL
b 2. The stock valuation model that determines the current stock price by dividing the next annual
dividend amount by the excess of the discount rate less the dividend growth rate is called the _____ model.
a. zero growth b. dividend growth c. capital pricing d. earnings capitalization e. discounted dividend Difficulty level: Easy DIVIDEND YIELD
c 3. Next year’s annual dividend divided by the current stock price is called the: a. yield to maturity. b. total yield. c. dividend yield. d. capital gains yield. e. earnings yield. Difficulty level: Easy CAPITAL GAINS YIELD
d 4. The rate at which a stock’s price is expected to appreciate (or depreciate) is called the _____
yield.
a. current b. total c. dividend d. capital gains e. earnings Difficulty level: Easy PREFERRED STOCK
d 5. A form of equity which receives preferential treatment in the payment of dividends is called
_____ stock.
a. dual class b. cumulative c. deferred d. preferred e. common Difficulty level: Easy PREFERRED STOCK
e 6. A _____ is a form of equity security that has a stated liquidating value. a. bond b. debenture
文档来源为:从网络收集整理.word版本可编辑.欢迎下载支持.
c. proxy d. common stock e. preferred stock Difficulty level: Medium COMMON STOCK
e 7. A form of equity which receives no preferential treatment in either the payment of dividends or
in bankruptcy distributions is called _____ stock.
a. dual class b. cumulative c. deferred d. preferred e. common Difficulty level: Easy CUMULATIVE VOTING
b 8. The voting procedure whereby shareholders may cast all of their votes for one member of the
board is called _____ voting.
a. democratic b. cumulative c. straight d. deferred e. proxy Difficulty level: Easy STRAIGHT VOTING
c 9. The voting procedure where you must own 50% plus one of the outstanding shares of stock to
guarantee that you will win a seat on the board of directors is called _____ voting.
a. democratic b. cumulative c. straight d. deferred e. proxy Difficulty level: Easy PROXY VOTING
e 10. The voting procedure where a shareholder grants authority to another individual to vote his/her
shares is called _____ voting.
a. democratic b. cumulative c. straight d. deferred e. proxy Difficulty level: Easy PREEMPTIVE RIGHTS
b 11. Preemptive rights refer to the right of shareholders to: a. share proportionately in dividends paid. b. share proportionately in any new stock issues sold. c. share proportionately in liquidated assets. d. vote at annual shareholder meetings. e. override the votes of other shareholders. Difficulty level: Medium DIVIDENDS
c 12. Payments made by a corporation to its shareholders, in the form of either cash, stock or
payments in kind, are called:
文档来源为:从网络收集整理.word版本可编辑.欢迎下载支持.
a. retained earnings. b. net income. c. dividends. d. redistributions. e. infused equity. Difficulty level: Easy PRIMARY MARKET
e 13. The market in which new securities are originally sold to investors is called the _____ market. a. dealer b. auction c. over-the-counter d. secondary e. primary Difficulty level: Easy SECONDARY MARKET
d 14. The market in which previously issued securities are traded among investors is called the _____
market.
a. dealer b. auction c. over-the-counter d. secondary e. primary Difficulty level: Easy DEALER
e 15. An agent who buys and sells securities from inventory is called a: a. broker. b. trader. c. capitalist. d. principal. e. dealer. Difficulty level: Easy BROKER
a 16. An agent who arranges security transactions among investors is called a: a. broker. b. trader. c. capitalist. d. principal. e. dealer. Difficulty level: Easy NYSE MEMBER
b 17. The owner of a seat on the New York Stock Exchange is called a(n) _____ of the exchange. a. friend b. member c. agent d. trustee e. dealer Difficulty level: Easy SPECIALIST
c 18. A member of the New York Stock Exchange acting as a dealer in one or more securities on the
exchange floor is called a:
a. floor trader.
文档来源为:从网络收集整理.word版本可编辑.欢迎下载支持.
b. floor post. c. specialist. d. floor broker. e. commission broker. Difficulty level: Easy FLOOR BROKER
d 19. A member of the New York Stock Exchange who executes orders for commission brokers on a
fee basis is a:
a. floor trader. b. dealer. c. specialist. d. floor broker. e. floor agent. Difficulty level: Easy COMMISSION BROKER
e 20. A member of the New York Stock Exchange who executes buy and sell orders from customers
once transmitted to the exchange floor is called a:
a. floor trader. b. dealer. c. specialist. d. floor broker. e. commission broker. Difficulty level: Easy FLOOR TRADER
a 21. A member of the New York Stock Exchange who trades for his or her own account, trying to
anticipate temporary price fluctuations, is called a(n):
a. floor trader. b. exchange customer. c. specialist. d. floor broker. e. commission broker. Difficulty level: Easy SUPERDOT SYSTEM
b 22. The electronic system used by the New York Stock Exchange which enables orders to be
transmitted directly to a specialist is called the ______ system..
a. NASDAQ b. SuperDOT c. Instinet d. Internet e. brokerage. Difficulty level: Easy ORDER FLOW
c 23. The ________ has a multiple market maker system rather than a specialist system. a. NYSE. b. AMEX. c. NASDAQ. d. NIKKEI e. None of the above. Difficulty level: Easy
OVER-THE-COUNTER MARKET
文档来源为:从网络收集整理.word版本可编辑.欢迎下载支持.
c
24. A securities market primarily comprised of dealers who buy and sell for their own inventories
is generally referred to as a(n) ______ market.
a. auction b. private c. over-the-counter d. regional e. electronic network Difficulty level: Easy ECNs
d 25. Electronic communications networks, or ECNs, act to: a. increase liquidity. b. increase competition. c. increase the cost to invest. d. A & B. e. A & C. Difficulty level: Medium II. CONCEPTS
VALUATION OF ZERO GROWTH STOCK
c 26. The James River Co. pays an annual dividend of $1.50 per share on its common stock. This dividend amount has been constant for the past 15 years and is expected to remain constant. Given this, one share of James River Co. stock: a. is basically worthless as it offers no growth potential. b. has a market value equal to the present value of $1.50 paid one year from today. c. is valued as if the dividend paid is a perpetuity. d. is valued with an assumed growth rate of 3%. e. has a market value of $15.00. Difficulty level: Easy
VALUATION OF ZERO GROWTH STOCK
e 27. The common stock of the Kenwith Co. pays a constant annual dividend. Thus, the market price
of Kenwith stock will:
a. also remain constant. b. increase over time. c. decrease over time. d. increase when the market rate of return increases. e. decrease when the market rate of return increases. Difficulty level: Easy
DIVIDEND YIELD VS. CAPITAL GAINS YIELD
c 28. The Koster Co. currently pays an annual dividend of $1.00 and plans on increasing that amount
by 5% each year. The Keyser Co. currently pays an annual dividend of $1.00 and plans on increasing their dividend by 3% annually. Given this, it can be stated with certainty that the _____ of the Koster Co. stock is greater than the _____ of the Keyser Co. stock.
a. market price; market price b. dividend yield; dividend yield c. rate of capital gain; rate of capital gain d. total return; total return e. capital gains; dividend yield Difficulty level: Medium DIVIDEND GROWTH MODEL d 29. The dividend growth model: I. assumes that dividends increase at a constant rate forever. II. can be used to compute a stock price at any point of time.
公司理财英文版题库6
