Question No: 24 ( Marks: 1 ) - Please choose one
Which of the following is called hybrid equity as it is the combination of both equity and debt factor?
► Common stocks
► Preferred stocks
► Bonds & securities
► All of the given options
Question No: 25 ( Marks: 1 ) - Please choose one
Which of the following can be used as measure of return?
► Forecasted selling price
► Forecasted purchase price
► Forecasted dividend
► Forecasted time span of project
Question No: 23 ( Marks: 1 ) - Please choose one
Market price of a share will be determined from __________.
► Supply of share only
► Demand of share only
► Price of share of Benchmark Company
► From demand and supply in the market
Question No: 16 ( Marks: 1 ) - Please choose one
What is the present value of Rs.1,000 to be paid at the end of 5 years if the interest rate is 8% compounded annually?
► Rs.680.58
► Rs.1,462.23
► Rs.322.69
► Rs.401.98
Question No: 17 ( Marks: 1 ) - Please choose one
What is the present value of Rs.53,000 to be paid at the end of 15 years if the interest rate is 9% compounded annually?
► Rs.25,300
► Rs.34,122
► Rs.14,549
► Rs.11,989
Question No: 15 ( Marks: 1 ) - Please choose one
A preferred stock will pay a dividend of Rs. 2.75 in the upcoming year, and every year thereafter, i.e., dividends are not expected to grow. You require a return of 10% on this stock. Use the constant growth model to calculate the intrinsic value of this preferred stock.
► Rs. 0.275
► Rs. 27.50
► Rs. 31.82
► Rs. 56.25
Question No: 11 ( Marks: 1 ) - Please choose one
You wish to earn a return of 12% on each of two stocks, A and B. Each of the stocks is expected to pay a dividend of Rs. 2 in the upcoming year. The expected growth rate of dividends is 9% for stock A and 10% for stock B. The intrinsic value of stock A:
► Will be greater than the intrinsic value of stock B
► Will be the same as the intrinsic value of stock B
► Will be less than the intrinsic value of stock B
► None of the given options