Tying Ratios Together Notes Questions with Answers PDF Download - 143

An equity multiplier is multiplied to return on assets to calculate

1. return on assets
2. return on multiplier
3. return on turnover
4. return on stock

A type of project whose cash flows would not depend on each other is classified as

1. project net gain
2. independent projects
3. dependent projects
4. net value projects

The third factor in the Fama French three factor model is the ratio which is classified as

1. book to market ratio
2. market to book ratio
3. company to industry ratio
4. stock to portfolio ratio

The net present value, profitability index, payback and discounted payback are the methods to

1. evaluate cash flow
2. evaluate projects
3. evaluate budgeting
4. evaluate equity

An actual rate of return is subtracted from expected growth rate then it is divided from dividend stockholders expect use for calculating

1. dividend growth model
2. actual growth model
3. constant growth model
4. variable growth model