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Stocks Valuation & Stock Market Equilibrium MCQs – Practice Test 5 PDF Download

MCQ 21: In expected rate of return for constant growth, an expected dividend yield must be:

  1. functional decreasing
  2. constant
  3. continuously growing
  4. functional increasing

MCQ 22: 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 23: In expected rate of return for constant growth, an expected yield on capital must be:

  1. equal to zero
  2. greater than expected growth rate
  3. less than expected growth rate
  4. equal to expected growth rate

MCQ 24: The capital gain is $2 and the beginning price is $24 then the capital gains yield will be:

  1. 22
  2. 0.1
  3. 0.12
  4. 0.12

MCQ 25: 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

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