PDF Test Bank For Fundamentals of Corporate Finance 10Th Edition Richard Brealey Stewart Myers Alan Marcus Online Ebook Full Chapter

Test Bank for Fundamentals of
Corporate Finance, 10th Edition,

Richard Brealey, Stewart Myers, Alan
Marcus
Visit to download the full and correct content document: https://testbankbell.com/dow
nload/test-bank-for-fundamentals-of-corporate-finance-10th-edition-richard-brealey-st
ewart-myers-alan-marcus/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
Solution Manual for Fundamentals of Corporate Finance,

10th Edition, Richard Brealey, Stewart Myers Alan
Marcus
http://testbankbell.com/product/solution-manual-for-fundamentals-
of-corporate-finance-10th-edition-richard-brealey-stewart-myers-
alan-marcus/
Test Bank for Fundamentals of Corporate Finance, 9th

Edition, Richard Brealey, Stewart Myers Alan Marcus
http://testbankbell.com/product/test-bank-for-fundamentals-of-
corporate-finance-9th-edition-richard-brealey-stewart-myers-alan-
marcus/
Solution Manual for Fundamentals of Corporate Finance,

9th Edition, Richard Brealey, Stewart Myers, Alan
Marcus
of-corporate-finance-9th-edition-richard-brealey-stewart-myers-
alan-marcus/
Test Bank for Fundamentals of Corporate Finance 7th

Canadian Edition Richard A. Brealey
http://testbankbell.com/product/test-bank-for-fundamentals-of-
corporate-finance-7th-canadian-edition-richard-a-brealey/
Solution Manual for Fundamentals of Corporate Finance
10th by Brealey
of-corporate-finance-10th-by-brealey/
Solution Manual for Fundamentals of Corporate Finance

7th Canadian Edition Richard A. Brealey
of-corporate-finance-7th-canadian-edition-richard-a-brealey/
Fundamentals of Corporate Finance 9th Edition Brealey

Test Bank
http://testbankbell.com/product/fundamentals-of-corporate-
finance-9th-edition-brealey-test-bank/
Test Bank for Principles of Corporate Finance 9th

Edition: Richard A. Brealey
http://testbankbell.com/product/test-bank-for-principles-of-
corporate-finance-9th-edition-richard-a-brealey/
Fundamentals of Corporate Finance Canadian 6th Edition

Brealey Test Bank
http://testbankbell.com/product/fundamentals-of-corporate-
finance-canadian-6th-edition-brealey-test-bank/
Test Bank for Fundamentals of Corporate Finance, 10th Edition, Richard Brealey, Stewart Myer
Test Bank for Fundamentals of Corporate Finance,

10th Edition, Richard Brealey, Stewart Myers, Alan
Marcus
To download the complete and accurate content document, go to:

https://testbankbell.com/download/test-bank-for-fundamentals-of-corporate-finance-1
0th-edition-richard-brealey-stewart-myers-alan-marcus/
Visit TestBankBell.com to get complete for all chapters

Fundamentals of Corporate Finance, 10e (Brealey)
Chapter 7 Valuing Stocks
1) The dividend discount model states that the value of a stock is the present value of the
dividends it will pay over the investor's horizon, plus the present value of the expected stock
price at the end of that horizon.
Answer: TRUE
Difficulty: 1 Easy
Topic: Dividend discount model
Learning Objective: 07-02 Calculate the present value of a stock given forecasts of future
dividends and show how growth opportunities are reflected in stock prices and price-earnings
ratios.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) An excess of market value over the book value of equity can be attributed to going concern
value.
Answer: TRUE
Difficulty: 2 Medium
Topic: Market and book values
ratios.
Bloom's: Understand
3) Securities with the same expected risk should offer the same expected rate of return.
Answer: TRUE
Topic: Risk and return relationship
ratios.
Bloom's: Understand
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
4) If investors believe a company will have the opportunity to make very profitable investments
in the future, they will pay more for the company's stock today.
Answer: TRUE
Difficulty: 1 Easy
ratios.
Bloom's: Understand
5) The dividend discount model should not be used to value stocks if the dividend does not grow.
Answer: FALSE
ratios.
Bloom's: Understand
6) If the stock prices follow a random walk, successive stock prices are not related.
Answer: FALSE
Topic: Random walk
Learning Objective: 07-04 Understand what professionals mean when they say that there are no
free lunches on Wall Street.
Bloom's: Understand
2
7) The liquidation value of a firm is equal to the book value of the firm.
Answer: FALSE
ratios.
Bloom's: Understand
8) Sustainable growth rates can be estimated by multiplying a firm's ROE by its dividend payout
ratio.
Answer: FALSE
Topic: Internal and sustainable growth rates
ratios.
Bloom's: Understand
9) If the market is efficient, stock prices should be expected to react only to new information.
Answer: TRUE
Difficulty: 1 Easy
Topic: Market efficiency-foundations and types
Bloom's: Remember
AACSB: Communication
3
10) If stock prices follow a random walk, their prices bear no relation to the company's real
activities.
Answer: FALSE
Difficulty: 1 Easy
Topic: Random walk
Bloom's: Remember
11) A negative free cash flow for a business is always sign that it is not performing well.
Answer: FALSE
Topic: Valuing an entire business
Learning Objective: 07-03 Apply valuation models to an entire business.
Bloom's: Understand
12) Evidence that stock prices follow a random walk does not imply that there aren't predictable
cycles in prices.
Answer: FALSE
Difficulty: 1 Easy
Topic: Random walk
Bloom's: Understand
13) Market efficiency implies that security prices impound new information quickly.
Answer: TRUE
Difficulty: 1 Easy
Topic: Market efficiency-implications
Bloom's: Understand
4
14) If security prices follow a random walk, then on any particular day the odds are that an
increase or decrease in price is about equally likely.
Answer: TRUE
Difficulty: 1 Easy
Topic: Random walk
Bloom's: Understand
15) Many professional investors attempt to beat the market by buying index funds.
Answer: FALSE
Difficulty: 1 Easy
Topic: Market efficiency-studies and challenges
Bloom's: Remember
16) Market efficiency implies that one could earn above-average returns by examining the
history of a firm's stock price.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
17) Market value, unlike book value and liquidation value, treats the firm as a going concern.
Answer: TRUE
Difficulty: 1 Easy
ratios.
Bloom's: Understand
5
18) The dividend yield of a stock is much like the current yield of a bond. Both ignore
prospective capital gains or losses.
Answer: TRUE
Topic: Stock returns and yields
ratios.
Bloom's: Understand
19) Historically, since 1926, growth stocks have earned higher average returns than value stocks.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Understand
20) A majority of active managers consistently earn higher returns than a simple a simple
strategy of just buying a slice of the entire large-cap universe.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
6
21) The dividend discount model states that today's stock price equals the present value of all
expected future dividends.
Answer: TRUE
Difficulty: 1 Easy
ratios.
Bloom's: Remember
22) The growth of mature companies is primarily funded by:

A) issuing new shares of stock.
B) issuing new debt securities.
C) reinvesting company earnings.
D) increasing accounts payable.
Answer: C
Difficulty: 1 Easy
ratios.
Bloom's: Remember
23) The sustainable growth rate represents the ________ rate at which a firm can grow:
A) maximum; while maintaining a constant debt-equity ratio.
B) maximum; based solely on internal financing.
C) minimum; while maintaining a constant debt-equity ratio.
D) minimum; based solely on internal financing.
Answer: A
Difficulty: 1 Easy
ratios.
Bloom's: Remember
7
24) Wilt's has earnings per share of $2.98 and dividends per share of $0.35. What is the firm's
sustainable rate of growth if its return on assets is 14.6% and its return on equity is 18.2%?
A) 2.14%
B) 1.71%
C) 12.89%
D) 16.06%
Answer: D
Explanation: Sustainable growth rate = ROE × plowback ratio
Sustainable growth rate = 0.182 × [($2.98 − 0.35)/$2.98]
Sustainable growth rate = 0.1606, or 16.06%

ratios.
Bloom's: Analyze
AACSB: Analytical Thinking
25) The sustainable rate of growth:

A) increases as the dividend payout ratio increases.
B) must be moderate over the long-term even if it is high in the short-term.
C) assumes the debt-equity ratio will increase at the same rate as the growth rate.
D) must exceed the required rate of return to be used in the dividend discount model.
Answer: B
ratios.
Bloom's: Understand
8
26) For a firm that repurchases its stock, firm value is most easily estimated by discounting
________
A) dividends plus repurchases per share.
B) repurchases rather than dividends.
C) free cash flows.
D) pre-repurchase earnings per share.
Answer: C
Bloom's: Remember
27) A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8%, and
$648,200 in next year's free cash flow. What value would you place on a share of this firm's
stock if you require a 14% rate of return?
A) $48.09
B) $52.96
C) $54.02
D) $61.58
Answer: B
Explanation: Price = [$648,200/(0.14 − 0.038)]/120,000 = $52.96
ratios.
Bloom's: Analyze
9
28) Which item indicates a flaw in the efficient market hypothesis?
A) A bubble in asset prices
B) Inflation fears increase interest rates
C) Insiders earn excess returns
D) Market indexes drop when GDP falls
Answer: A
Topic: Behavioral finance
Bloom's: Understand
29) The semi-strong form of the efficient market hypothesis states that:
A) the efficient market hypothesis is only half true.
B) professional investors make superior profits but amateurs can't.
C) stock prices do not follow a random walk.
D) prices reflect all publicly available information.
Answer: D
Difficulty: 1 Easy
Bloom's: Remember
30) If the general sentiment of investors is pessimistic, stock prices are more apt to:
A) increase significantly.
B) increase slightly.
C) remain constant.
D) decline.
Answer: D
Difficulty: 1 Easy
ratios.
Bloom's: Apply
10
31) If investors expect a 14% return on a $50 stock that pays a dividend of $2.50, what is the
implied capital gain rate?
A) 5%
B) 7%
C) 9%
D) 14%
Answer: C
Explanation: Capital gain rate = 0.14 - $2.50/$50 = 0.09 or 9%
ratios.
Bloom's: Apply
32) Which of these statements is correct? Free cash flow

A) is available to be paid out to investors as interest or dividends, or to repay debt or buy back
stock.
B) is positive if the company is issuing debt or stock.
C) is equal to net income.
D) is another term for retained earnings.
Answer: A
Bloom's: Remember
11
33) If markets are efficient, when new information about a stock becomes available, the price
will:
A) remain unchanged because it already reflects this information.
B) accurately and rapidly adjust to include this new information.
C) adjust to accurately reflect this new information over the course of the next few days.
D) most likely increase because all new information has a positive effect on stock prices.
Answer: B
Bloom's: Understand
34) Which statement is correct?

A) Stock repurchases invalidate the dividend discount model
B) Stock repurchases do not add value to a business and can be ignored.
C) When there are repurchases, it is simpler to value a business by discounting the free cash
flow.
D) Stock repurchases increase the number of shares and make it difficult to forecast dividends
per share
Answer: C
Bloom's: Understand
12
35) What dividend yield would be reported in the financial press for a stock that currently pays a
$1 dividend per quarter and the most recent stock price was $40?
A) 2.5%
B) 4.0%
C) 10.0%
D) 5.0%
Answer: C
Explanation: Dividend yield = ($1 × 4)/$40 = 0.100, or 10.0%
Learning Objective: 07-01 Understand the stock trading reports on the Internet or in the
financial pages of the newspaper.
Bloom's: Apply
36) Which of the following values treats the firm as a going concern?
A) Market value
B) Book value
C) Liquidation value
D) Both market and book values
Answer: A
Difficulty: 1 Easy
Bloom's: Understand
13
37) A stock is selling for $37.50 and is expected to pay a dividend of $3 at the end of the year. If
investors expect a return of 14%, what must be the sustainable growth rate?
A) 4%
B) 5%
C) 6%
D) 7%
Answer: C
Explanation: 37.50 = 3 / (0.14 – g)
Sustainable growth rate = 0.06 or 6%

ratios.
Bloom's: Analyze
38) If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year and the dividend payout
ratio is 40%, what is the stock's current price?
A) $24.30
B) $18.00
C) $22.22
D) $40.50
Answer: D
Explanation: Price = 13.5 × $3 = $40.50
Difficulty: 1 Easy
Topic: Stock valuation using multiples
ratios.
Bloom's: Apply
14
39) With respect to the notion that stock prices follow a random walk, many researchers have
concluded that:
A) stock prices reflect a majority of available information about the firm.
B) successive price changes are predictable.
C) past stock price changes provide little useful information about future stock price changes.
D) stock prices always rise excessively in January.
Answer: C
Topic: Random walk
Bloom's: Understand
40) What is the current price of a share of stock for a firm with $5 million in balance-sheet
equity, 500,000 shares of stock outstanding, and a price/book value ratio of 4?
A) $2.50
B) $10.00
C) $20.00
D) $40.00
Answer: D
Explanation: Price = 4 × ($5,000,000/500,000) = $40
ratios.
Bloom's: Apply
15
41) A firm's liquidation value is the amount:
A) necessary to repurchase all outstanding shares of common stock.
B) realized from selling all assets and paying off all creditors.
C) a purchaser would pay to acquire all of the firm's assets.
D) shown on the balance sheet as total owners' equity.
Answer: B
Difficulty: 1 Easy
ratios.
Bloom's: Understand
42) Which one of the following is least likely to account for an excess of market value over book
value of equity?
A) Inaccurate depreciation methods
B) High rate of return on assets
C) The presence of growth opportunities
D) Valuable off-balance sheet assets
Answer: A
ratios.
Bloom's: Understand
16
43) Firms with valuable intangible assets are more likely to show a(n):
A) excess of book value over market value of equity.
B) high going-concern value.
C) low liquidation value.
D) low P/E ratio.
Answer: B
ratios.
Bloom's: Understand
44) Which of the following is inconsistent with a firm that sells for very near book value?
A) Low current earnings
B) Few, if any, intangible assets
C) High future earning power
D) Low, unstable dividend payment
Answer: C
Difficulty: 1 Easy
ratios.
Bloom's: Understand
17
45) A stock paying $5 in annual dividends currently sells for $80 and has an expected return of
14%. What might investors expect to pay for the stock one year from now after the next dividend
has been paid?
A) $82.20
B) $86.20
C) $87.20
D) $91.20
Answer: B
Explanation: 0.14 = (P1 + $5 − 80)/$80
P1 = $86.20
ratios.
Bloom's: Analyze
46) A stock currently sells for $50 per share, has an expected return of 15%, and an expected
capital gain rate of 10%. What is the amount of the expected dividend?
A) $2.50
B) $2.75
C) $3.00
D) $3.50
Answer: A
Explanation: Dividend yield = 0.15 − 0.10 = 0.05
Expected dividend = 0.05 × $50 = $2.50

ratios.
Bloom's: Analyze
18
47) The expected return on a common stock is equal to:
A) [(1 + dividend yield) × (1 + capital gain rate)] − 1.
B) the capital gain rate + dividend yield.
C) (1 + capital gain rate) / (1 + dividend yield).
D) the capital gain rate − dividend yield.
Answer: B
Difficulty: 1 Easy
ratios.
Bloom's: Understand
48) It is possible to ignore cash dividends that occur very far into the future when using a
dividend discount model because those dividends:
A) will most likely be paid to a different investor.
B) will most likely not be paid.
C) have an insignificant present value.
D) have a minimal, if any, potential rate of growth.
Answer: C
ratios.
Bloom's: Understand
19
49) If the dividend yield for year 1 is expected to be 5% based on a stock price of $25, what will
the year 4 dividend be if dividends grow annually at a constant rate of 6%?
A) $1.33
B) $1.49
C) $1.58
D) $1.67
Answer: B
Explanation: DIV4 = (0.05 × $25) × 1.063 = $1.49
Topic: Constant-growth stock
ratios.
Bloom's: Analyze
50) Dani's just paid an annual dividend of $6 per share. What is the dividend expected to be in
five years if the growth rate is 4.2%?
A) $7.07
B) $7.37
C) $7.14
D) $7.44
Answer: B
Explanation: DIV3 = $6 × 1.0425 = $7.37
ratios.
Bloom's: Analyze
20
51) The value of common stock will likely decrease if:
A) the investment horizon decreases.
B) the growth rate of dividends increases.
C) the discount rate increases.
D) dividends are discounted back to the present.
Answer: C
Difficulty: 1 Easy
ratios.
Bloom's: Understand
52) When valuing stock with the dividend discount model, the present value of future dividends
will:
A) change depending on the time horizon selected.
B) remain constant regardless of the time horizon selected.
C) remain constant regardless of the rate of growth.
D) always equal the present value of the terminal price.
Answer: B
Difficulty: 1 Easy
ratios.
Bloom's: Understand
21
53) What should be the price for a common stock paying $3.50 annually in dividends if the
growth rate is zero and the discount rate is 8%?
A) $22.86
B) $28.00
C) $42.00
D) $43.75
Answer: D
Explanation: Price = $3.50/0.08 = $43.75
Topic: Perpetuities
ratios.
Bloom's: Apply
54) What should you pay for a stock if next year's annual dividend is forecast to be $5.25, the
constant-growth rate is 2.85%, and you require a 15.5% rate of return?
A) $31.25
B) $38.87
C) $41.50
D) $42.68
Answer: C
Explanation: Price = $5.25/(0.155 − 0.0285) = $41.50
ratios.
Bloom's: Analyze
22
55) What price would you pay today for a stock if you require a rate of return of 13%, the
dividend growth rate is 3.6%, and the firm recently paid an annual dividend of $2.50?
A) $27.55
B) $30.28
C) $26.60
D) $31.37
Answer: A
Explanation: Price = ($2.50 × 1.036)/(0.13 − 0.036) = $27.55
Difficulty: 3 Hard
ratios.
Bloom's: Analyze
56) What constant-growth rate in dividends is expected for a stock valued at $32.40 if next year's
dividend is forecast at $2.20 and the appropriate discount rate is 13.6%?
A) 7.02%
B) 6.59%
C) 6.81%
D) 7.38%
Answer: C
Explanation: $32.40 = $2.20/(0.136 − g); g = 0.0681, or 6.81%
ratios.
Bloom's: Analyze
23
57) What rate of return is expected from a stock that sells for $30 per share, pays $1.54 annually
in dividends, and is expected to sell for $32.80 per share in one year?
A) 15.03%
B) 14.28%
C) 14.09%
D) 14.47%
Answer: D
Explanation: Expected return = ($32.80 + 1.54 − 30)/$30 = 0.1447, or 14.47%
ratios.
Bloom's: Analyze
58) ABC common stock is expected to have extraordinary growth in earnings and dividends of
20% per year for 2 years, after which the growth rate will settle into a constant 6%. If the
discount rate is 15% and the most recent dividend was $2.50, what should be the approximate
current share price?
A) $31.16
B) $33.23
C) $37.39
D) $47.77
Answer: C
Explanation: Price = ($2.50 × 1.2)/1.15 + ($2.50 × 1.22)/1.152 + [($2.50 × 1.22 × 1.06)/(0.15 −
0.06)]/1.152 = $37.39
Difficulty: 3 Hard
Topic: Two-stage growth stock
ratios.
Bloom's: Analyze
24
59) What would be the approximate expected price of a stock when dividends are expected to
grow at a 25% rate in each of years 2 and 3, and then grow at a constant rate of 5% if the stock's
required return is 13% and next year's dividend will be $4.00?
A) $67.60
B) $62.08
C) $68.64
D) $76.44
Answer: C
Explanation: Price = $4/1.13 + ($4 × 1.25)/1.132 + ($4 × 1.252)/1.133 + [($4 × 1.252 ×
1.05)/(0.13 − 0.05)]/1.133 = $68.64
Difficulty: 3 Hard
Topic: Two-stage growth stock
ratios.
Bloom's: Analyze
60) A company with a return on equity of 15% and a plowback ratio of 60% would expect a
constant-growth rate of:
A) 4%.
B) 9%.
C) 21%.
D) 25%.
Answer: B
Explanation: g = 0.15 × 0.60 = 0.09, or 9%
Difficulty: 1 Easy
ratios.
Bloom's: Apply
25
61) What is the plowback ratio for a firm that has earnings per share of $2.68 and pays out $1.75
per share in dividends?
A) 28.20%
B) 34.70%
C) 66.67%
D) 71.80%
Answer: B
Explanation: Plowback ratio = ($2.68 − 1.75)/$2.68 = 0.3470, or 34.70%
ratios.
Bloom's: Analyze
62) A positive value for PVGO suggests that the firm has:
A) a positive return on equity.
B) a positive plowback ratio.
C) investment opportunities with superior returns.
D) a high rate of constant growth.
Answer: C
Difficulty: 1 Easy
Topic: Net present value growth opportunity
ratios.
Bloom's: Understand
26
63) Which of the following situations accurately describes a growth stock, assuming that each
firm has a required return of 12%?
A) A firm with PVGO = $0.
B) A firm with investment opportunities yielding 10%.
C) A firm with investment opportunities yielding 15%.
D) A firm with PVGO < $0.
Answer: C
ratios.
Bloom's: Understand
64) Other things equal, a firm's sustainable growth rate could increase as a result of:
A) increasing the plowback ratio.
B) increasing the payout ratio.
C) decreasing the return on equity.
D) increasing total assets.
Answer: A
ratios.
Bloom's: Understand
27
65) Under which of the following forms of market efficiency would stock prices always reflect
fair value?
A) Weak-form efficiency
B) Semi-strong-form efficiency
C) Strong-form efficiency
D) Semi-weak-form efficiency
Answer: C
Difficulty: 1 Easy
Bloom's: Understand
66) Investors are willing to purchase stocks having high P/E ratios because:
A) they expect these shares to sell for a lower price.
B) they expect these shares to offer higher dividend payments.
C) these shares are accompanied by guaranteed earnings.
D) they expect these shares to have greater growth opportunities.
Answer: D
Difficulty: 1 Easy
ratios.
Bloom's: Understand
28
67) Which of the following is least likely to contribute to going concern value?
A) High liquidation value
B) Extra earning power
C) Future investment opportunities
D) Intangible assets
Answer: A
ratios.
Bloom's: Understand
68) What happens to a firm that reinvests its earnings at a rate equal to the firm's required return?
A) Its stock price will remain constant.
B) Its stock price will increase by the sustainable growth rate.
C) Its stock price will decline unless the dividend payout ratio is zero.
D) Its stock price will decline unless the plowback rate exceeds the required return.
Answer: A
ratios.
Bloom's: Understand
29
69) What can be expected to happen when stocks having the same expected risk do not have the
same expected return?
A) At least one of the stocks becomes temporarily mispriced.
B) This is a common occurrence indicating that one stock has more PVGO.
C) This cannot happen if the shares are traded in an auction market.
D) The expected risk levels will change until the expected returns are equal.
Answer: A
Topic: Risk and return relationship
ratios.
Bloom's: Understand
70) The terminal value of a share of stock:

A) is similar to the maturity value of a bond.
B) refers to the share value at the end of an investor's holding period.
C) is the value received by investors upon liquidation of the firm.
D) is the price for shares traded through a dealers' market.
Answer: B
ratios.
Bloom's: Remember
30
71) A stock is expected to pay dividends of $1.20 per share in Year 1 and $1.35 per share in Year
2. After that, the dividend is expected to increase by 2.5% annually. What is the current value of
the stock at a discount rate of 14.5%?
A) $11.29
B) $10.87
C) $12.07
D) $13.39
Answer: B
Explanation: Price = $1.20/1.145 + $1.35/1.1452 + [($1.35 × 1.025)/(0.145 − 0.025)]/1.1452 =
$10.87
Topic: Nonconstant-growth stock
ratios.
Bloom's: Analyze
72) Jefferson's recently paid an annual dividend of $1.31 per share. The dividend is expected to
decrease by 4% each year. How much should you pay for this stock today if your required return
is 16%?
A) $6.29
B) $5.74
C) $10.48
D) $11.57
Answer: A
Explanation: Price = [$1.31 × (1 − 0.04)]/[0.16 − (−0.04)] = $6.29
ratios.
Bloom's: Analyze
31
73) Which one of the following is more likely to be responsible for a firm having a low PVGO?
A) ROE exceeds required return.
B) Plowback is very high.
C) Market value of equity is close to book value.
D) Book value of equity is low.
Answer: C
ratios.
Bloom's: Understand
74) What is the most likely value of the PVGO for a stock with a current price of $50, expected
earnings of $6 per share, and a required return of 20%?
A) $10
B) $20
C) $25
D) $30
Answer: B
Explanation: With a 100% payout ratio, the stock would be valued at $30 ($6/0.20 = $30).
Thus, the $20 of additional price must represent the PVGO.
ratios.
Bloom's: Apply
32
75) What is the expected constant-growth rate of dividends for a stock with a current price of
$87, an expected dividend payment of $5.40 per share, and a required return of 16%?
A) 8.48%
B) 6.25%
C) 9.79%
D) 5.23%
Answer: C
Explanation: $87 = $5.40/(0.16 − g); g = 0.0979, or 9.79%
ratios.
Bloom's: Analyze
76) Which of the following is true for a firm having a stock price of $42, an expected dividend of
$3, and a sustainable growth rate of 8%?
A) It has a required return of 15.14%.
B) It has a dividend yield of 7.35%.
C) The stock price is expected to be $45 next year.
D) It has a capital gain rate of 7.14%.
Answer: A
Explanation: Required return = $3/$42 + 0.08 = 0.1514, or 15.14%
ratios.
Bloom's: Apply
33
77) What is the value of the expected dividend per share for a stock that has a required return of
16%, a price of $45, and a constant-growth rate of 12%?
A) $1.80
B) $3.60
C) $4.50
D) $7.20
Answer: A
Explanation: $45 = DIV1/(0.16 − 0.12); Div1 = $1.80
ratios.
Bloom's: Analyze
78) What is the required return for a stock that has a constant-growth rate of 3.3%, a price of
$25, an expected dividend of $2.10, and a P/E ratio of 14.4?
A) 12.40%
B) 10.92%
C) 11.70%
D) 11.26%
Answer: C
Explanation: $25 = $2.10/(r − 0.033); r = 11.70%
ratios.
Bloom's: Analyze
34
79) What should be the price of a stock that offers a $4.32 annual dividend with no prospects of
growth, and has a required return of 12.5%?
A) $0
B) $4.86
C) $34.56
D) $30.24
Answer: C
Explanation: P = $4.32/0.125 = $34.56
Difficulty: 1 Easy
Topic: Perpetuities
ratios.
Bloom's: Apply
80) Psychologists have observed that:

A) once investors have made a loss, they become much more willing to take risks.
B) investors tend to place too much faith in their ability to spot mispriced stocks.
C) when forecasting the future, people tend to place too little weight on recent events.
D) investors like stocks of companies whose names begin with letters that occur early in the
alphabet.
Answer: B
Bloom's: Understand
35
81) If The Wall Street Journal lists a stock's dividend as $1, then it is most likely the case that the
stock:
A) pays $1 per share per quarter.
B) paid $.25 per share per quarter for the past year.
C) paid $1 during the past quarter, with no future dividends forecast.
D) is expected to pay a dividend of $1 per share at the end of next year.
Answer: B
Topic: Common stock features
Bloom's: Understand
82) Suzi owns 100 shares of AB stock. She expects to receive a $238 in dividends next year.
Investors expect the stock to sell for $46 a share one year from now. What is the intrinsic value
of this stock if the dividend payout ratio is 40% and the discount rate is 13.5%?
A) $38.19
B) $42.63
C) $40.53
D) $45.77
Answer: B
Explanation: Intrinsic value = [($238/100) + $46]/1.135 = $42.63
ratios.
Bloom's: Analyze
36
83) What is the minimum amount shareholders should expect to receive in the event of a
complete corporate liquidation?
A) Market value of equity
B) Book value of equity
C) Zero
D) Shareholders may be required to pay to be liquidated.
Answer: C
Topic: Common stock features
ratios.
Bloom's: Understand
84) If the price of a stock falls on 4 consecutive days of trading, then stock prices:
A) cannot be following a random walk.
B) can still be following a random walk.
C) are almost certain to increase the following day.
D) are almost certain to decrease the following day.
Answer: B
Topic: Random walk
Bloom's: Understand
37
85) What should be the stock value one year from today for a stock that currently sells for $35,
has a required return of 15%, an expected dividend of $2.80, and a constant dividend growth rate
of 7%?
A) $37.45
B) $37.80
C) $40.25
D) $43.05
Answer: A
Explanation: $2.80 × 1.07/(0.15 − 0.07) = $37.45
Difficulty: 1 Easy
ratios.
Bloom's: Apply
86) The required return on an equity security is comprised of a:

A) dividend yield and ROE.
B) current yield and a terminal value.
C) sustainable growth rate and a plowback yield.
D) dividend yield and a capital gains yield.
Answer: D
Difficulty: 1 Easy
ratios.
Bloom's: Understand
38
87) What should be the current price of a share of stock if a $5 dividend was just paid, the stock
has a required return of 20%, and a constant dividend growth rate of 6%?
A) $19.23
B) $25.00
C) $35.71
D) $37.86
Answer: D
Explanation: Price = ($5 × 1.06)/(0.20 − 0.06) = $37.86
ratios.
Bloom's: Analyze
88) What should be the current price of a stock if the expected dividend is $5, the stock has a
required return of 20%, and a constant dividend growth rate of 6%?
A) $19.23
B) $25.00
C) $35.71
D) $37.86
Answer: C
Explanation: Price = $5.00/(0.20 − 0.06) = $35.71
ratios.
Bloom's: Analyze
39
89) Reinvesting earnings into a firm will not increase the stock price unless:
A) the new paradigm of stock pricing is maintained.
B) true depreciation is less than reported depreciation.
C) the firm's dividends are growing also.
D) the return on the new investments exceeds the firm's required return.
Answer: D
ratios.
Bloom's: Understand
90) What proportion of earnings is being plowed back into the firm if the sustainable growth rate
is 8% and the firm's ROE is 20%?
A) 60%
B) 80%
C) 20%
D) 40%
Answer: D
Explanation: 8% = 20% × plowback; Plowback = 40%
ratios.
Bloom's: Apply
40
91) How much of a stock's $30 price is reflected in PVGO if it expects to earn $4 per share, has
an expected dividend of $2.50, and a required return of 20%?
A) $0
B) $6
C) $8
D) $10
Answer: D
Explanation: PVGO = $30 − ($4/0.2) = $10
ratios.
Bloom's: Analyze
92) What is the expected constant-growth rate of dividends for a stock currently priced at $50,
that just paid a dividend of $4, and has a required return of 18%?
A) 3.41%
B) 5.50%
C) 9.26%
D) 12.5%
Answer: C
Explanation: $50 = $4(1 + g)/(0.18 - g); g = 9.26%
Difficulty: 3 Hard
ratios.
Bloom's: Analyze
41
93) According to random-walk theory, what are the (approximate) odds that a stock will increase
in price after having increased on two consecutive days of trading?
A) 0%
B) 25%
C) 50%
D) 100%
Answer: C
Difficulty: 1 Easy
Topic: Random walk
Bloom's: Understand
94) If the liquidation value of a corporation exceeds the market value of the equity, then the:
A) firm has no value as a going concern.
B) firm's stock will sell for book value.
C) firm is not taking advantage of available growth opportunities.
D) dividend payout ratio has been too high.
Answer: A
ratios.
Bloom's: Understand
42
95) In a valuation of a nonconstant dividend growth stock, the terminal value represents the:
A) point at which the present value of future dividends equals zero.
B) maturity date of the stock.
C) present value of future dividends from that point on.
D) highest value that the stock will attain.
Answer: C
Topic: Nonconstant-growth stock
ratios.
Bloom's: Understand
96) Which one of the following situations is most likely to occur today for a stock that went
down in price yesterday?
A) The stock will increase in price.
B) The stock will decrease in price.
C) The stock has a 30% chance of decreasing in price.
D) The stock has no predictable price-change pattern.
Answer: D
Topic: Random walk
Bloom's: Understand
43
97) Based on the random walk theory, if a stock's price decreased last week, then this week the
price:
A) will reverse last week's loss and go up.
B) will continue last week's decline.
C) will stand still until new information is released.
D) has an equal chance of going either up or down.
Answer: D
Topic: Random walk
Bloom's: Understand
98) Research indicates that the correlation coefficient between successive days' stock price
changes is:
A) quite close to +1.
B) quite close to
C) quite close to zero.
D) directly related to the stock's beta.
Answer: C
Topic: Random walk
Bloom's: Understand
99) An analyst who relies on past cycles of stock pricing to make investment decisions is:
A) performing fundamental analysis.
B) relying on strong-form market efficiency.
C) assuming that the market is not even weak-form efficient.
D) relying on the random walk of stock prices.
Answer: C
Topic: Random walk
Bloom's: Understand
44
A) When stock prices barely change for a while, they are said to be stuck in a "bubble."
B) Bubbles can result when prices rise rapidly and investors join the game on the assumption that
prices will continue to rise.
C) Most bubbles with hindsight can be justified by the improved fundamentals.
D) "Bubbles" is another term for stocks in high-tech industries.
Answer: B
Bloom's: Understand
101) If it proves possible to make abnormal profits based on information regarding past stock
prices, then the market is:
A) weak-form efficient.
B) not weak-form efficient.
C) semi strong-form efficient.
D) strong-form efficient.
Answer: B
Difficulty: 1 Easy
Bloom's: Understand

A) The momentum factor refers to the tendency for stock price changes to reverse.
B) The momentum factor refers to the tendency for stock price changes to persist for a while and
then revert.
C) The momentum factor implies that stock prices are rather like a pendulum.
D) The momentum factor is inconsistent with the strong form of the efficient market hypothesis.
Answer: B
Difficulty: 1 Easy
Bloom's: Remember
45
A) It is much easier to judge whether the absolute level of stock prices is correct rather than
whether their relative levels are correct.
B) It is much easier to judge whether relative stock prices are correct than to judge whether their
absolute level is correct.
C) Most tests of market efficiency are concerned with the absolute level of stock prices.
D) If relative prices are correct, then absolute prices must be correct also.
Answer: B
Bloom's: Understand
104) Market efficiency implies

A) that investors are irrational.
B) that there is no point to buying common stocks.
C) that consistently superior performance is very difficult even for professional investors.
D) that there are no taxes.
Answer: C
Bloom's: Remember
46
105) If no price change occurs in a stock on the day that it announces its next dividend, it can be
assumed that:
A) the stock market is inefficient.
B) the dividend was reduced.
C) the market was expecting this information.
D) technical analysts are not following this stock.
Answer: C
Difficulty: 1 Easy
Bloom's: Understand
106) When investors are not capable of making superior investment decisions on a consistent
basis based on past prices or public or private information, the market is said to be:
A) weak-form efficient.
B) semi strong-form efficient.
C) strong-form efficient.
D) fundamentally efficient.
Answer: C
Bloom's: Remember
47
107) Evidence that newly issued stocks tend to underperform the market over the following
years:
A) is a natural result of risk aversion.
B) is exactly what you would expect in an efficient market.
C) is inconsistent with the semi-strong form of the efficient market hypothesis.
D) is evidence against the random walk hypothesis.
Answer: C
Difficulty: 1 Easy
Bloom's: Understand
108) For corporate financial managers an important lesson of market efficiency is:
A) Trust market prices unless you have a clear advantage that ensures the odds are in your favor.
B) Issue stock after a rise in price.
C) Be on the lookout for undervalued companies to take over.
D) Your company should be able to make healthy profits from its foreign exchange dealings.
Answer: A
Bloom's: Understand
109) When new information becomes available in the market, evidence generally suggests that:
A) insiders will be the only investors to gain.
B) it takes at least ten trading days for stock prices to adjust.
C) stock prices will adjust to the information rapidly.
D) transaction costs will erase any benefit of trading on the information.
Answer: C
Difficulty: 1 Easy
Topic: Market efficiency-studies and challenges
Bloom's: Understand
48
110) Suppose that the total value of dividends to be paid by companies in the Narnian stock
market index is $100 billion. Investors expect dividends to grow over the long term by 5%
annually, and they require a 10% return. Now a collapse in the economy leads investors to revise
their growth estimate down to 4%. By how much should market values change?
A) −16.67%.
B) zero.
C) −20%.
D) +20%.
Answer: A
Explanation: Before the collapse: PV = 100/(0.10 − 0.05) = $2,000 bn
After the collapse: PV = 100/(0.10 − 0.04) =$1,667 bn
Change = 1,667/2,000 − 1 = −16.67%

ratios.
Bloom's: Understand
111) Your broker suggests that you can make consistent, excess profits by purchasing stocks on
the 20th of the month and selling them on the last day of the month. If this is true, then:
A) the market is only semi strong-form efficient.
B) the market violates even weak-form efficiency.
C) insiders will be the only investors to profit.
D) prices follow a random walk.
Answer: B
Bloom's: Understand
49
Test Bank for Fundamentals of Corporate Finance, 10th Edition, Richard Brealey, Stewart Myer
112) If a firm unexpectedly raises its dividend permanently and by a substantial amount, the
firm's stock price:
A) should rise, given dividend discount models.
B) should decline, given discounted cash flow analysis.
C) will remain constant, due to market efficiency.
D) remain constant, due to random-walk behavior.
Answer: A
ratios.
Bloom's: Understand
113) The statement that there are no free lunches on Wall Street suggests that:
A) the market is strong-form efficient.
B) there is no return to technical or fundamental analysis.
C) security prices reflect all available information.
D) food stocks offer the lowest rates of return.
Answer: C
Bloom's: Understand
50
Visit TestBankBell.com to get complete for all chapters

Another random document with
no related content on Scribd:
Half portions. Ferber, E. (Jl ’20)
Hall with doors. Hasbrouck, L. S. (N ’20)
Hamilton, Alexander, 1757–1804
Ford, H: J. Alexander Hamilton. (Ag ’20)
Hamlet. Stoll, E. E. (Je ’20)
Hand in the dark. Rees, A. J: (S ’20)
Hand-made fables. Ade, G: (Ap ’20)
Handbook for practical farmers. Findlay, H., ed.
(Ja ’21)
Handbook for rural school officers. Showalter, N.
D: (Jl ’20)
Handbook of American government. Bartlett, W:
H. (S ’20)
Handbook of ore dressing, equipment and
practice. Allen, A. W. (F ’21)
Handbook on health and how to keep it. Camp, W.
C. (My ’20)
Handbook to the league of nations. Butler, G. G.
(My ’20)
Hands off Mexico. Turner, J: K. (Jl ’20)
Hannah Bye. Morris, H. S. (Ja ’21)
Happily married. Harris, C. M. (Ap ’20)
Happy bride. Jesse, F. T. (D ’20)
Happy house. Abbott, J. L. (Jl ’20)
Happy house. Hutten zum Stolzenberg, B. (Ap
’20)
Happy hunting grounds. Roosevelt. K. (D ’20)
Happy woman. Weyl, M. (Ap ’20)
Harbors
Rush, T. E. Port of New York. (Jl ’20)
Harriet and the piper. Norris, K. (S ’20)
Hartley, Catherine Gasquoine. See Gallichan,
C. G.
Harvest. Ward, M. A. (My ’20)
Haunted hour. Widdemer, M. (Ap ’20)
Havana
Hergesheimer, J. San cristóbal de la Habana.
(Ja ’21)
Have we a Far Eastern policy? Sherrill, C: H. (Ag
’20)
Hay, Elijah, pseud. See Seiffert, M. A.
Head of the house. Eng title of Lister’s great
adventure. Bindloss, H. (F ’21)
Health
Roget, F. R. Altitude and health. (D ’20)
Heart
Diseases
Bishop, L: F. Heart troubles. (S ’20)
Heart of Cherry McBain. Durkin, D. (N ’20)
Heart of New England. Brown, A. F. (N ’20)
Heart of the world. Jones, J. H:, jr. (Ag ’20)
Heart of Unaga. Cullum, R. (N ’20)
Hearts of three. London, J. (F ’21)
Heavens and earth. Benét, S. V. (F ’21)
Hellenic conceptions of peace. Caldwell, W. E. (Mr
’20)
Helmets and body armor in modern warfare.
Dean, B. (O ’20)
Helping Hersey. Hutten zum Stolzenberg, B. (Ag
’20)
Helping men own farms. Mead, E. (Ag ’20)
Henry Elizabeth. McCarthy, J. H. (S ’20)
Henry V, king of England, 1387–1422
Mowat, R. B. Henry V. (D ’20)
Hero of the longhouse. Laing, M. E. (F ’21)
Hero stories of France. Tappan, E. M. (Je ’20)
Heroes
Dimmock, F. H., ed. Scouts’ book of heroes. (F
’21)
Lanier, H: W. Book of bravery. (Ja ’21)
Heroes of early Israel. Wood, I. F. (F ’21)
Hesitant heart. Welles, W. (My ’20)
Hey-rub-a-dub-dub. Dreiser, T. (Je ’20)
Hidden Creek. Burt, K. N. (O ’20)
Hidden eyes. Levison, E. (F ’21)
Hidden people. Miller, L. E: (Ja ’21)
Hidden trails. White, W: P. (O ’20)
Hidden treasure of Rasmola. Rihbany, A. M. (F
’21)
Hide and seek. Morley, C. D. (D ’20)
High company. Lee, H. S. (O ’20)
High life. Rhodes, H. G. (F ’21)
High school boy and his problems. Clark, T: A. (N
’20)
High school farces. Hill, F: T. (Ja ’21)
High schools
Parker, S: C. Methods of teaching in high
schools. (Jl ’20)
Highacres. Abbott, J. L. (D ’20)
Higher psychical development. Carrington, H. (N
’20)
Highway to leadership. Slattery, M. (F ’21)
Hiker Joy. Connolly, J. B. (Je ’20)
Hills of Han. Merwin, S: (D ’20)
His friend and his wife. Hamilton, C. (Je ’20)
His Majesty’s well-beloved. Orczy, E. (Ap ’20)
Hispanic anthology. Walsh, T:, ed. (D ’20)
Historical child. Chrisman, O. (F ’21)
Historical portraits, 1700–1850. Fletcher, C: R. L.
(D ’20)
Historical sources of Defoe’s Journal of the plague
year. Nicholson, W. (S ’20)
History
Reade, W. Martyrdom of man. (Ag ’20)
Outlines, syllabi, etc.
Putnam, G: P., comp. Tabular views of
universal history. (Ap ’20)
Philosophy
Adams, H: Degradation of the democratic
dogma. (Ap ’20)
Partridge, G: E. Psychology of nations. (My
’20)
Study and teaching
Hasluck, E. L: Teaching of history. (F ’21)
Tuell, H. E. Study of nations. (Mr ’20)
History, Ancient
Murray, G. Our great war and the great war of
the ancient Greeks. (Ag ’20)
History, Modern
West, W. M. Story of modern progress. (Jl ’20)
History, Universal
Bryce, J. B. World history. (F ’21)
Wells, H. G: Outline of history. (D ’20)
History and power of mind. Ingalese, R: (Ag ’20)
History of a literary radical. Bourne, R. S. (F ’21)
History of American literature. Boynton, P. H. (Mr
’20)
History of Cuba. Johnson, W. F. (S ’20)
History of education. Cubberley, E. P. (Ja ’21)
History of Europe, ancient and medieval.
Breasted, J. H:, and Robinson, J. H. (O ’20)
History of everyday things in England. Quennell,
M. and C: H: B. (Jl ’20)
History of France. Davis, W: S. (Ag ’20)
History of France. Duruy, V: (D ’20)
History of imperialism. Tucker, I. St J: (Ja ’21)
History of journalism in the United States. Payne.
G: H: (Ag ’20)
History of modern colloquial English. Wyld, H: C.
K. (D ’20)
History of Persian literature under Tartar
dominion. Browne, E: G. (F ’21)
History of sea power. Stevens, W: O., and
Westcott, A. F. (Ja ’21)
History of the A. E. F. Thomas, S. (D ’20)
History of the American field service in France. (N
’20)
History of the Atlantic coast line railroad. Dozier,
H. D. (Je ’20)
History of the great war. Doyle, A. C. (Ap ’20)
History of the Japanese people. Brinkley, F., and
Kikuchi, D. (O ’20)
History of the thrift movement in America. Straus,
S. W: (Ap ’20)
History of the United States from Hayes to
McKinley. Rhodes, J. F. (Ag ’20)
History of the world war. Simonds, F. H. (O ’20)
History of trade unionism. Webb, S. and B. (Je
’20)
Hither and thither in Germany. Howells, W: D.
(Mr ’20)
Holland, Henry Fox, 1st baron, 1705–1774
Ilchester, G. S. H. F. Henry Fox. (N ’20)
Holy fire. Wylie, I. A. R. (Ag ’20)
Home—then what? (Ap ’20)
Home economics
Cooley, A. M., and Spohr, W. Household arts for
home and school. (My ’20)
Cooley, A. M., and others. Teaching home
economics. (My ’20)
Willard, F., and Gillett, L. H. Dietetics for high
schools. (F ’21)
Home-education of children. Forbush, W: B. (Ap
’20)
Homespun and gold. Brown, A. (Ja ’21)
Honest thief. Dostoevskii, F. M. (Ap ’20)
Honor Bright. Richards, L. E. (O ’20)
Hoover, Herbert Clark, 1874–
Kellogg, V. L. Herbert Hoover. (Je ’20)
Lane, R. Making of Herbert Hoover. (N ’20)
Hope of the world. Wilson, W. (Jl ’20)
Horses
Poetry
Frothingham, R., comp. Songs of horses. (N
’20)
Horsley, Sir Victor Alexander Haden,
1857–1916
Paget, S. Sir Victor Horsley. (D ’20)
Hosiery manufacture. Davis, W: (O ’20)
Hot bulb oil engines and suitable vessels. Pollock,
W. (Ja ’21)
Hours of labor
Leverhulme, W: H. L. Six-hour shift and
industrial efficiency. (Jl ’20)
House of Baltazar. Locke, W: J: (Mr ’20)
House of dreams-come-true. Pedler, M. (S ’20)
House of dust. Aiken, C. P. (N ’20)
House organs
O’Shea, P: F. Employees’ magazines. (O ’20)
Ramsay, R. E. Effective house organs. (Ap ’20)
House with a bad name. Sheehan, P. P. (D ’20)
Household arts for home and school. Cooley, A.
M., and Spohr, W. (My ’20)
Housing and the housing problem. Aronovici, C.
(S ’20)
Housing problem
Aronovici, C. Housing and the housing problem.
(S ’20)
Knowles, M. Industrial housing. (Ja ’21)
Whitaker, C: H. Joke about housing. (Ag ’20)
How I filmed the war. Malins, G. H. (Ap ’20)
How it feels to be fifty. Butler, E. P. (Ag ’20)
How many cards? Ostrander, I. E. (Ja ’21)
How presidents are made. Dunn, A. W. (Je ’20)
How the war came. Loreburn, R. T. R. (My ’20)
How to become an office stenographer. Mason, W.
L. (Ap ’20)
How to develop your will power. Major, C. T. (N
’20)
How to reduce. Donnelly, A. (Ja ’21)
How to study music. Farnsworth, C: H. (D ’20)
How to teach in Sunday-school. Schmauk, T. E.
(Ag ’20)
How to use cement for concrete construction for
town and farm. Campbell, H: C. (Je ’20)
How to write special feature articles. Bleyer, W. G.
(Mr ’20)
How we advertised America. Creel, G: (Ag ’20)
Human and industrial efficiency. Chellew, H: (N
’20)
Human costs of the war. Folks, H. (Jl ’20)
Human efficiency and levels of intelligence.
Goddard, H: H. (D ’20)
Human factor in education. Munroe, J. P. (D ’20)
Human factor in industry. Frankel, L. K., and
Fleisher, A. (S ’20)
Human nature in business. Kelly, F. C. (Jl ’20)
Human personality and its survival of bodily
death. Myers, F: W: H: (Ag ’20)
Human psychology. Warren, H. C. (Jl ’20)
Human traits and their social significance.
Edman, I. (N ’20)
Humanism in New England theology. Gordon, G:
A. (My ’20)
Humanizing industry. Feld, R. C. (O ’20)
Humor
Ade, G: Hand-made fables. (Ap ’20)
Cobb, I. S. Abandoned farmers. (D ’20)
Cobb, I. S., and Rinehart, M. R. Oh, well, you
know how women are! and Isn’t that just like
a man! (My ’20)
Robey, G: My rest cure. (Ap ’20)
Humours of a parish, and other quaintnesses.
Money, W. B. (O ’20)
Hunger. Hamsun, K. (D ’20)
Hungry hearts. Yezierska, A. (D ’20)
Hunting
Caswell, J: Sporting rifles and rifle shooting. (S
’20)
Clapham, R: Foxhunting on the Lakeland fells.
(Ja ’21)
Newbolt, H: J: Book of good hunting. (F ’21)
Roosevelt, K. Happy hunting grounds. (D ’20)
Stebbing, E: P. Diary of a sportsman naturalist
in India. (Ja ’21)
Husband. Anstruther, E. H. A. (Jl ’20)
Hygiene
Camp, W. C. Handbook on health and how to
keep it. (My ’20)
Miles, E. H. Self-health as a habit. (D ’20)
Proceedings of the international conference of
women physicians. (Ja ’21)
Hygiene, Public
Henry, A. Forests, woods and trees in relation to
hygiene. (Ja ’21)
Hyphen. Schem, L. C. (Ja ’21)
I wonder why. Goldsmith, M. (O ’20)

Ibos (Nigeria)
Basden, G: T: Among the Ibos of Nigeria. (Ja
’21)
Idea of atonement in Christian theology. Rashdall,
H. (Je ’20)
Idea of progress. Bury, J: B. (N ’20)
Ideals of America. City club of Chicago. (Je ’20)
Idling in Italy. Collins, J. (D ’20)
Idolatry of science. Coleridge, S. (F ’21)
Idyl of the split bamboo. Holden, G: P. (Ja ’21)
If you don’t write fiction. Cushing, C: P. (Ag ’20)
Ignition devices
Pagé, V: W. Automobile starting, lighting, and
ignition. (D ’20)
Illinois
Social life and customs
Reed, E. H. Tales of a vanishing river. (F ’21)
Illustrating of books
Whiting, J: D. Practical illustration. (Ja ’21)
Imagination and its place in education.
Kirkpatrick, E. A. (D ’20)
Immigration
Davis, P., and Schwartz, B., eds. Immigration
and Americanization. (Mr ’20)
Drachsler, J. Democracy and assimilation. (F
’21)
Orth, S: P. Our foreigners. (D ’20)
Immigration and Americanization. Davis, P., and
Schwartz, B., eds. (Mr ’20)
Immortality
Heagle, D: Do the dead still live? (Jl ’20)
Tweedale, C: L. Man’s survival after death. (D
’20)
Imperfect mother. Beresford, J: D. (Jl ’20)
Imperial trans-Antarctic expedition, 1914–
1917
Shackleton, E. H: South. (Ap ’20)
Imperialism
Tucker, I. St J: History of imperialism. (Ja ’21)
Impressions that remained. Smyth, E. (My ’20)
In April once. Percy, W: A. (D ’20)
In Berkshire fields. Eaton, W. P. (N ’20)
In chancery. Galsworthy, J: (N ’20)
In Kut and captivity with the Sixth Indian
division. Sandes, E: W. C. (F ’21)
In Lincoln’s chair. Tarbell, I. M. (My ’20)
In lower Florida wilds. Simpson, C: T. (O ’20)
In Morocco. Wharton, E. N. (D ’20)
In old Pennsylvania towns. Wharton, A. H. (F ’21)
In the days of the Pilgrim fathers. Crawford, M. C.
(Jl ’20)
In the garret. Van Vechten, C. (Mr ’20)
In the house of another. Mantle, B. (D ’20)
In the mountains. (N ’20)
In the prison camps of Germany. Hoffman, C. (Ja
’21)
In the shadow of Lantern street. Woodworth, H.
G. (Jl ’20)
In the tracks of the trades. Freeman, L: R. (N ’20)
In the world war. Czernin von und zu Chudenitz,
O. T. O: M. (My ’20)
Inbreeding and outbreeding. East, E: M., and
Jones, D. F. (Ag ’20)
Income
Pickard, B. Reasonable revolution. (My ’20)
Index number for state school systems. Ayres, L.
P. (F ’21)
Index to St Nicholas. Guthrie, A. L., comp. (Ap
’20)
India
Bannerjea, D. N. India’s nation builders. (N ’20)
Ladd, G: T. Intimate glimpses of life in India.
(Mr ’20)
History
Moreland, W: H. India at the death of Akbar.
(F ’21)
Politics and government
Macdonald, J. R. Government of India. (D
’20)
Mookerji, R. Local government in ancient
India. (D ’20)
Young, P. N. F., and Ferrers, A. India in
conflict. (F ’21)
India at the death of Akbar. Moreland, W: H. (F
’21)
India in conflict. Young, P. N. F., and Ferrers, A.
(F ’21)
Indiana
Description and travel
Parsons, J: Tour through Indiana in 1840. (O
’20)
Indians of North America
Laing, M. E. Hero of the longhouse. (F ’21)
Social life and customs
Autobiography of a Winnebago Indian. (S
’20)
India’s nation builders. Bannerjea, D. N. (N ’20)
Indiscretions of the naval censor. Brownrigg, D. E.
R. (Je ’20)
Industrial administration. Berriman, A. E., and
others. (Ja ’21)
Industrial arts
Griffith, I. S: Teaching manual and industrial
arts. (Ag ’20)
Industrial gases. Greenwood, H. C. (Ag ’20)
Industrial housing. Knowles, M. (Ja ’21)
Industrial management
Muscio, B. Lectures on industrial psychology.
(N ’20)
Tead, O., and Metcalf, H: C. Personnel
administration. (D ’20)
Industrial relations
Baker, R. S. New industrial unrest. (Je ’20)
Bloomfield, D., comp. Selected articles on
modern industrial movements. (Ag ’20)
Goodrich, C. L. Frontier of control. (Ja ’21)
Holmes, J: H. Is violence the way out of our
industrial disputes? (Je ’20)
Leverhulme, W: H. L. Six-hour shift and
industrial efficiency. (Jl ’20)
Litchfield, P. W. Industrial republic. (Jl ’20)
Thomas, E: Industry, emotion and unrest. (O
’20)
Industrial republic. Litchfield, P. W. (Jl ’20)
Industrial research
Mees, C: E: K. Organization of industrial
scientific research. (S ’20)
Industrialism
Eckel, E. C. Coal, iron and war. (S ’20)
Industry and state
Berriman, A. E., and others. Industrial
administration. (Ja ’21)
Industry, emotion and unrest Thomas, E: (O ’20)
Inevitable. Couperus, L: M. A. (D ’20)
Inflation and high prices. Academy of political
science. (F ’21)
Influence of animism on Islam. Zwemer, S: M. (Ag
’20)
Influence of oversea expansion on England to
1700. Gillespie, J. E: (F ’21)
Influence of Puritanism on the political and
religious thought of the English. Flynn, J: S. (F
’21)
Inland navigation
Ogilvie, P. M. International waterways. (Je ’20)
Inorganic chemical synonyms. Darling, E. R. (Mr
’20)
Inscrutable lovers. MacFarlan, A. (Ap ’20)
Insects
Herrick, G. W. Insects of economic importance.
(O ’20)
Inside story of Austro-German intrigue.
Gori[)c]ar, J., and Stowe, L. B. (Ap ’20)
Inside story of the peace conference. Dillon, E. J.
(Mr ’20)
Insomnia
Walsh, W: S. Yours for sleep. (S ’20)
Instigations of Ezra Pound. Pound, E. L. (S ’20)
Insurance, Marine
Huebner, S. S. Marine insurance. (D ’20)
Intellectuals and the wage workers. Cory, H. E.
(My ’20)
Interim. Richardson, D. M. (Ag ’20)
Internal-combustion engines. Lind, W. L. (F ’21)
International commerce and reconstruction.
Friedman, E. M. (Jl ’20)
International labor legislation. Ayusawa, I. F: (Ja
’21)
International law and relations

PDF Test Bank For Fundamentals of Corporate Finance 10Th Edition Richard Brealey Stewart Myers Alan Marcus Online Ebook Full Chapter

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PDF Test Bank For Fundamentals of Corporate Finance 10Th Edition Richard Brealey Stewart Myers Alan Marcus Online Ebook Full Chapter

Uploaded by

Copyright:

Available Formats

Test Bank for Fundamentals of

Corporate Finance, 10th Edition,

Solution Manual for Fundamentals of Corporate Finance,

Test Bank for Fundamentals of Corporate Finance, 9th

Solution Manual for Fundamentals of Corporate Finance,

Test Bank for Fundamentals of Corporate Finance 7th

Solution Manual for Fundamentals of Corporate Finance

Fundamentals of Corporate Finance 9th Edition Brealey

Test Bank for Principles of Corporate Finance 9th

Fundamentals of Corporate Finance Canadian 6th Edition

Test Bank for Fundamentals of Corporate Finance,

To download the complete and accurate content document, go to:

Visit TestBankBell.com to get complete for all chapters

22) The growth of mature companies is primarily funded by:

Sustainable growth rate = 0.182 × [($2.98 − 0.35)/$2.98]

Sustainable growth rate = 0.1606, or 16.06%

25) The sustainable rate of growth:

32) Which of these statements is correct? Free cash flow

34) Which statement is correct?

Sustainable growth rate = 0.06 or 6%

Expected dividend = 0.05 × $50 = $2.50

70) The terminal value of a share of stock:

80) Psychologists have observed that:

86) The required return on an equity security is comprised of a:

102) Which statement is correct?

104) Market efficiency implies

After the collapse: PV = 100/(0.10 − 0.04) =$1,667 bn

Change = 1,667/2,000 − 1 = −16.67%

Visit TestBankBell.com to get complete for all chapters

I wonder why. Goldsmith, M. (O ’20)

You might also like