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Financial Management MCQs – Practice Test 1 (Chapter 10)

Stocks Valuation and Stock Market Equilibrium MCQs with Answers PDF Download – Test 1

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Stocks Valuation & Stock Market Equilibrium MCQs – Practice Test 1 PDF Download

MCQ 1: The shares or stocks which are protected against withdrawals of funds by an original stock owners are classified as:

  1. protected shares
  2. founders shares
  3. withdrawal shares
  4. original shares

MCQ 2: The method of stock valuation which is the multiple of earnings per share, book value and net income is classified as:

  1. stock multiple analysis
  2. dividend multiple analysis
  3. market multiple analysis
  4. stock and multiple analysis

MCQ 3: The preferred dividend is $50 and the required rate of return is 2.5% then the value of preferred stock would be:

  1. 0.2
  2. 125
  3. 2000
  4. 52.5

MCQ 4: In expected rate of return for constant growth, the stock price must grow according to an expected rate and:

  1. at same price
  2. at different price
  3. at yielded price
  4. at buying price

MCQ 5: The dividend present value for period of non-constant growth in addition with horizon value is used to calculate:

  1. stock extrinsic value
  2. stock intrinsic value
  3. dividend intrinsic value
  4. stock intrinsic value

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