Quiz Ch 13 – Impact of Financial Changes on Stock Metrics
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What conclusion can be drawn considering the changes in earnings per share, dividends, and share price?
What conclusion can be drawn considering the changes in earnings per share, dividends, and share price?
What is the impact of increasing the plowback ratio on the P/E ratio?
What is indicated when a stock is accurately priced?
In which industry does the Dividend Discount Model usually provide accurate market price estimations?
According to the constant-growth DDM and given the provided return requirement and dividend growth rates, will the intrinsic value of stock A be higher, equal to, or lower than stock B?
Based on a desired 11% return, dividends, and growth rates, according to the constant-growth DDM, will the intrinsic value of stock A be higher, equal to, or lower than stock B?
Based on the constant-growth DDM, dividend amounts, and different return demands for stocks A and B, will the intrinsic value of stock A be greater, equal to, or less than stock B?
What term refers to the market’s agreed-upon required return for a stock?
What factor does the PEG ratio incorporate to adjust the P/E ratio?
What is the typical relationship between value stocks and their PEG ratio?