Related Questions

You are considering investing in a firm and wish to place a value on the common stock. The dividend on the firm's stock has not changed in the last five years. In absence of any information suggesting future changes in the dividend rate, the most appropriate stock valuation model be the -----model.
A zero growth
B constant growth
C non-constant groth
D growing perpetuity
Mr. Abul Kashem has set up a pultry firm with investment of TA, 50,000. He gets an average yearly income of TA. 36,000 from the firm, If he did not set up this poultry firm, with this investment he could set up a grocery shop. From such grocery he could get an yearly income of TA. 39,000. What is the opportunity cost of the Poultry firm that Mr. Kashem is running?
A TA. 50,000
B TA. 37,500
C TA. 39,000
D TA. 11,000
A company declares a 40% stock dividend when there are 4.0 million common shares outstanding with a Tk.1 per value. Their current market price is Tk. 20 per share. Which of the following will be the effect of the stock dividend ?
A Retained earnings will decrease by Tk. 1.6 million and contributed capital will increase by Tk 1.6 million.
B Contributed capital will decrease by Tk 1.6 million and retained earnings will increased by Tk. 1.6 million
C Retained earnings will decrease by Tk. 32 million and contributed capital will increase by Tk. 32 million
D Contributed capital will decrease by Tk. 32 million and retained earnings will increase by Tk. 32 million
Find the amount of dividend per share received annually by a stock holder for the following : Par value = TK. 10, Dividend rate= 4%,
A TK. 0.5
B TK. 0.40
C None of these
The preferred stock of Jay's Comics currently sells for Tk. 23.25 per share. The annual dividend of Tk. 1.50 is fixed. Assuming a constant dividend forever,what is the rate of return on this stock ?
A 3.49 percent
B 6.45 percent
C 8.06 percent
D 8.50 percent
Sum of capital gains and dividend payments which are paid to stock holders on periodic basis is equal to
A return to common stockholders
B return on premium bonds
C return to stock holder
D return to preferred stock
Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as
A non-participating preferred stock
B participating preferred stock
C non-cumulative preferred stock
D cumulative preferred stock
A television with a price of $300 is to be purchased with an initial payment of $60 and weekly payments of $30. Which of the following equations can be used to find the number of weekly payments, required to complete the purchase, assuming there are no taxes of free?
A 300 = 30w - 60
B 300 = 60w - 30
C 300 = 30w + 60
D 300 = 30w
Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as
A common stock
B preferred stock
C bonds equity
D common shares
A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________.
A bundling
B un-bundling
C financial engineering
D credit enhancement
E B & C

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