50.1K

Verified Solution

Link Copied!

NEED JUST THE ANSWERS TO DOUBLE CHECK:

QUESTION 17

Applied Materials Inc. (Symbol: AMAT) has the following financial statistics: stock price = $19.08, market cap = $25.83 billion, beta = 0.3, dividend payout ratio = 23%, EPS = $1.10, Expected DPS = $0.24, analyst forecast of earnings growth rate = 12%. Based on the constant growth valuation model and using only the data provided, what expected rate of return is priced into the stock?

		A. 12.01%
		B. 13.26%
		C. 35%
		D. None of the above

QUESTION 18

Applied Materials Inc. (Symbol: AMAT) has the following financial statistics: stock price = $19.08, market cap = $25.83 billion, beta = 0.3, dividend payout ratio = 23%, EPS = $1.10, Expected DPS = $0.24, analyst forecast of earnings growth rate = 12%. Suppose r = 16%. Based on the constant growth valuation model and using the data provided, calculate the stock price.

		A. $19
		B. $24
		C. $6
		D. None of the above

QUESTION 19

Most U.S. stocks trade in the New York Stock Exchange

A. True

B. False

QUESTION 20

Russell 2000 [I] is a market value index [II] contains the 2000 smallest firms in the Russell 3000 index [III] contains the 2000 largest firms in the S&P 500 [IV] contains the 2000 smallest firms in the NASDAQ Composite Index

		A. I, II
		B. II, III
		C. III, IV
		D. I, IV

QUESTION 21

A call option on a common stock gives the writer of the call the right but not an obligation to deliver the stock if the option holder exercises

A. True

B. False

QUESTION 22

A put option writer must BUY the stock if the holder of the option exercises it

A. True

B. False

Answer & Explanation Solved by verified expert

See Answer