MGMT 211 SB01 F2017 Business Finance-FINAL 4. Select the correct match for each

Question

MGMT 211 SB01 F2017 Business Finance-FINAL 4. Select the correct match for each of the following. A. Stock owned by a relatively large number of individuals B. Current market prices reflect all publicly available information C. Current market prices reflect all pertinent information, both publicly an privately held. D. Stock owned by a few individuals, typically those associated with the f a. Closely held stock b. Publicly owned stock_ c. Strong-form market efficiency d. Semi-strong-form market efficiency 5. The expected return on Northeast Corporation's stock is 14%. The stock's divi expected to grow at a constant rate of 8%, and it currently sells for $50 a share. Whic following statements is correct? a. The stock's dividend yield is 7%. b, The stock's dividend yield is 8%. The current dividend per share is $4.00. The stock price is expected to be $54 a share 1 year from now. c. . What will heavy use of off-balance sheet lease financing tend to do? ake a company appear riskier than it actually is because its stated debt rat reased a company appear less risky than it actually is because its stated del company's cash flows but not its degree of risk

Explanation / Answer

5)

Hence, correct option is (D).

Current dividend (D0) P0×(r-g)÷(1+g) Here, Stock price (P0) $                            50.00 Required return ( r) 14.00% Growth rate (g) 8.00% Current dividend (D0) $                              2.78 50*(14%-8%)/(1+8%)

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