Financial Management - Study Mode
[#686] Expected dividends in each year and price investor expecting to get at selling of stock are two components of
Correct Answer
(B) expected cash flows
Explanation
Solution: Expected dividends in each year and price investor expecting to get at selling of stock are two components of expected cash flows. The cash flow an investor or company expects to realize from a project before that project begins.
[#687] In expected rate of return for constant growth, an expected total rate of return must be
Correct Answer
(C) equal to expected yield on dividend
Explanation
Solution: In expected rate of return for constant growth, an expected total rate of return must be equal to expected yield on dividend.
[#688] Owners of corporation having certain rights and privileges are considered as
Correct Answer
(B) common stockholders
Explanation
Solution: Owners of corporation having certain rights and privileges are considered as common stockholders. Common stockholders are usually given voting rights, with the number of votes directly related to the number of shares owned.
[#689] Stockholders having right to elect directors and in smaller firms have high post are classified as
Correct Answer
(D) common stockholders
Explanation
Solution: Stockholders having right to elect directors and in smaller firms have high post are classified as common stockholders. Common stockholders are usually given voting rights, with the number of votes directly related to the number of shares owned.
[#690] Constant growth rate is 7.2% and an expected rate of return is 12.5% then expected dividend yield will be
Correct Answer
(A) 5.30%
Explanation
Solution: Expected dividend yield = Expected rate of return - Constant growth rate = 12.5% - 7.2% = 5.30%