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1. A student has identified the CAPM and DDM as important formulas for finding a stocks required return and price, respectively. Other things remaining equal, a surprise change in which of the following statistics will increase the stocks price? A stocks price is likely to rise when theres a surprise:

Select one:

a.Fall in the risk free rate.

b.Rise in the market risk premium.

c.Rise in the stocks beta.

d.Fall in the stocks expected dividend.

e.Fall in the stocks expected dividend growth rate.

2.

Over-priced individual stocks plot:

Select one:

a.Above the security market line (SML).

b.On the SML.

c.Below the SML.

d.Above the capital market line (CML).

e.On the CML.

3. Below is the formula for Net Operating Profits After Tax (NOPAT). Note that it's just the same as Net Profit After Tax (NPAT) or Net Income (NI), but interest expense (IntExp) is ignored or set to zero.

NPAT = (Rev-COGS-FixedCosts-Depr-IntExp)*(1-tc) = Earnings = NI

NOPAT = (Rev-COGS-FixedCosts-Depr)*(1-tc)

For profit-making firms with leverage, which formula deducts the actual amount of tax that the firm will pay?

Select one:

a. NPAT.

b.NOPAT.

c.Both NPAT and NOPAT deduct the correct amount of tax.

d.Neither.

4. Elon Musk said If something has to be designed and invented, and you have to figure out how to ensure that the value of the thing you create is greater than the cost of the inputs, then that is probably my core skill. Elon Musk believes that his core skill is:

Select one:

a.Diversifying.

b. Maximising projects net present values.

c.Understanding and applying the principal of time value of money.

d.Growing sales through marketing.

e.Raising funds to finance his project

PLEASE ANSWER ALL KINDLY. i cannot post everything in one so I will be posting more finance questions now..

if you could help me with other questions that I am posting would be really appreciated thank you..

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