Quiz Ch 04 – Identifying a Growth Stock
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Which is classified as a growth stock?
Which is classified as a growth stock?
Which is NOT an auction market?
True or false: Employing the discounted cash flow formulas commonly utilized for valuing common stocks is a viable approach for valuing entire businesses.
True or false: Owners of common stocks receive their only returns through cash dividends.
True or false: The cost of equity capital for a constant dividend growth stock is calculated as the difference between the dividend yield and the growth rate in dividends.
True or false: The majority of trading on the NYSE involves ordinary common stocks.
True or false: The New York Stock Exchange stands alone as the sole stock market in the United States.
True or false: The expected return from a common stock, also known as its market capitalization rate or cost of equity capital, is anticipated by investors.
True or false: The present value of growth opportunities makes up a substantial portion of the total value of a growth stock.
True or false: By using a limit order, an investor instructs their brokerage firm to purchase a specified quantity of shares at the most advantageous price currently available.