Financial Management - Study Mode
[#981] Pre-emptive right of common stockholders are necessarily included in company
Correct Answer
(C) corporate charter
Explanation
Solution: Pre-emptive right of common stockholders are necessarily included in company corporate charter. A corporate charter sets forth a corporation's basic information, its location, profit/ nonprofit status, board composition, and ownership structure.
[#982] Constant growth rate is 8% and an expected dividend yield is 5.4% then expected rate of return would be
Correct Answer
(C) 13.40%
Explanation
Solution: Expected rate of return = Constant growth rate + Expected dividend yield = 8% + 5.4% = 13.40%.
[#983] Real rate of return, risk and expected inflation are primary determinants of
Correct Answer
(A) minimum rate of return
Explanation
Solution: Real rate of return, risk and expected inflation are primary determinants of minimum rate of return. The required rate of return is the minimum return an investor expects to achieve by investing in a project. An investor typically sets the required rate of return by adding a risk premium to the interest percentage that could be gained by investing excess funds in a risk-free investment.
[#984] Preferred stocks are also classified as
Correct Answer
(B) perpetuities
Explanation
Solution: Preferred stocks are also classified as perpetuities. Perpetuity refers to an infinite amount of time. In finance, perpetuity is a constant stream of identical cash flows with no end.
[#985] After-the-fact rate of return often consider as realized or actual can be denoted
Correct Answer
(B) r bar s
Explanation
Solution: After-the-fact rate of return often consider as realized or actual can be denoted r bar s.