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Finc600 Week 2 Practice Quiz

• Date Submitted: 01/28/2016 07:13 AM
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FINC600 Week 2 Practice Quiz

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Corporate Finance
Week 2 Practice Quiz
Question 1 of 15
If the Wall Street Journal Quotation for a company has the following values close: 55.14; Net chg: = + 1.04; then the closing price for the stock for the previous trading day was?
A. \$56.18
B. \$54.10
C. \$55.66
D. None of the above.

Feedback: Previous closing = today's closing net chg. = 55.14 - 1.04 = \$54.10
Question 2 of 15
The value of a common stock today depends on:
A. Number of shares outstanding and the number of shareholders
B. The expected future dividends and the discount rate
C. the Wall Street analysts

Question 3 of 15
Company X has a P/E ratio of 10 and a stock price of \$50 per share. Calculate earnings per share of the company.
A. \$6 per share
B. \$10 per share
C. \$0.20 per share
D. \$5 per share

Question 4 of 15
Which of the following stocks is/are a growth stock(s)?
A. Unilever
B. Cummins, Inc
C. Starbucks
D. All of the above are growth stocks

Question 5 of 15
Universal Air is a no growth firm and has two million shares outstanding. It is expected to earn a constant 20 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 10%, calculate the current price per share for the stock.
A. \$200
B. \$150
C. \$100
D. \$50

Question 6 of 15
Which of the following investment rules does not use the time value of the money concept?
A. Net present value
B. Internal rate of return
C. The payback period
D. All of the above use the time value concept

Question 7 of 15
The following are measures used by firms when making capital budgeting decisions except:
A. Payback period
B. Internal rate of return
C. P/E ratio
D. Net present value

Question 8 of 15...

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