FI515 Managerial Finance

SATURDAY, OCTOBER 15, 2011

Week 6 exam

Week 6 Exam
Numeric Grade: 90 / 100 pts

Letter Grade:

Outcome assessment: Comments:

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GRADING SUMMARY

These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below.

Date Taken: 10/12/2011 Time Spent: 4 h , 49 min , 11 secs Points Received: 90 / 100 (90%)

Question Type: Multiple Choice Essay

# Of Questions: 9 1

# Correct: 9 N/A

GRADE DETAILS

1.

Question :

(TCO D) A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 11.4%, what is the stock price? $16.28 Student Answer: $16.70 $17.13 $17.57 $18.01 Chapter 7 Instructor

Explanation:

Points Received: Comments:

10 of 10

2. Question :

(TCO D) If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $50, what is the stocks expected dividend yield for the coming year? 4.42% Student Answer: 4.66% 4.89% 5.13% 5.39% Chapter 7 Instructor

Explanation:

Points Received: Comments:

10 of 10

3. Question :

(TCO D) Carter's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its nominal (not effective) annual rate of return? 8.03% Student Answer: 8.24% 8.45% 8.67% 8.89% Chapter 7 Instructor

Explanation: