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Financial Management MCQs – Practice Test 14 (Chapter 10)

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Stocks Valuation & Stock Market Equilibrium MCQ – Practice Test 14 PDF Download

MCQ 66: The value of future dividends after the horizon date is classified as:

  1. hypothesis value
  2. horizon value
  3. terminal value
  4. Both B and C

MCQ 67: The preemptive right of the common stockholders are necessarily included in company's:

  1. laws
  2. purchase chart
  3. corporate charter
  4. selling charter

MCQ 68: The constant growth rate is 8% and an expected dividend yield is 5.4% then the expected rate of return would be:

  1. −3.4%
  2. 0.034
  3. 0.134
  4. −13.4%

MCQ 69: The real rate of return, risk and expected inflation are the primary determinants of:

  1. minimum rate of return
  2. accepted return
  3. expected return
  4. real risk free rate

MCQ 70: The preferred stocks are also classified as:

  1. intrinsic preference
  2. perpetuities
  3. extrinsic preference
  4. weak preference

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