Common Stock Valuation Multiple Choice Questions with Answers – PDF Download

MCQ 1: The current price is $40 and the dividend paid is $10 then the dividend yield will be:

1. 25
2. 0.25
3. 4
4. 0.04

MCQ 2: The paid dividend is $20 and the current price is $50 then the dividend yield will be:

1. 0.4
2. 40
3. 70
4. 30

MCQ 3: The rate of return which considers the riskiness and an available returns on the investments is classified as:

1. constant dividend
2. constant rate
3. maximum rate of return
4. minimum acceptable rate of return

MCQ 4: The value of stock as concluded with the help of analysis by particular investor is classified as:

1. particular value
2. intrinsic value
3. fundamental value
4. Both B and C

MCQ 5: A formula such as an original investment plus an expected capital gain is used to calculate:

1. final stock
2. expected stock
3. expected final stock price
4. final stock price