Quiz Ch 13 – Determining Shareholder Returns in Dissolution
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What term describes the per-share amount that shareholders could receive through asset liquidation after debt repayment?
What term describes the per-share amount that shareholders could receive through asset liquidation after debt repayment?
What conclusion can be drawn regarding this stock with an intrinsic value of $15 and an actual stock price of $13.50?
Which outcomes are guaranteed if the firm reduces its dividend payout with an ROE of 12% and shareholder preferences for a 4% dividend yield and 9% capital gain yield?
What can be concluded about the firm when it decreases its dividend payout ratio?
What is expected to happen to earnings growth and the stock’s P/E ratio given a higher dividend plowback ratio and all else equal?
What characteristic is most likely associated with a company that has an expected earnings growth rate higher than the industry average?
How does the expected return of an underpriced stock compare to the required return according to the Capital Asset Pricing Model (CAPM)?
Which factor negatively affects a company’s intrinsic value when considered alone?
What factor would contribute to a rise in a firm’s price-earnings ratio when all other conditions are constant?
What is the typical relationship between the P/E ratios of firms with higher expected growth rates compared to firms with lower expected growth rates?