Question 10 Which of the following changes will make the value of a stock go down, other...

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Finance

Question 10

Which of the following changes will make the value of a stock godown, other things being held constant?

The required return increases.

The required return decreases.

The growth rate of dividends increases.

In general, investors become less risk averse.

Question 3

Stock A has the following returns for various states of theeconomy:

State of
the Economy Probability Stock A's Return
Recession 5% -15%
Below Average 25% -2%
Average 40% 9%
Above Average 25% 14%
Boom 5% 15%

Stock A's expected return is:

6.60%

7.35%

8.35%

8.85%

Question 1

Emery Company is expected to pay a dividend of $2.25 per share.The company's stock is currently selling for $60 per share, and therequired rate of return on Emery Company stock is 16%. What is thegrowth rate expected for Emery Company dividends assuming constantgrowth?

13.92%

11.81%

12.25%

13.63%

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Question 10Which of the following changes will make the value of a stock godown, other things being held constant?The required return increases.The required return decreases.The growth rate of dividends increases.In general, investors become less risk averse.Question 3Stock A has the following returns for various states of theeconomy:State ofthe Economy Probability Stock A's ReturnRecession 5% -15%Below Average 25% -2%Average 40% 9%Above Average 25% 14%Boom 5% 15%Stock A's expected return is:6.60%7.35%8.35%8.85%Question 1Emery Company is expected to pay a dividend of $2.25 per share.The company's stock is currently selling for $60 per share, and therequired rate of return on Emery Company stock is 16%. What is thegrowth rate expected for Emery Company dividends assuming constantgrowth?13.92%11.81%12.25%13.63%

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