Finance Quiz
Question 1 Which of the following assets belongs to the operating assets? Accounts receivables Marketable securities Accounts payables Both A and C Question 2 According to the nonconstant dividend growth model discussed in the textbook, the expected dividend growth rate during the initial growth period is different from the expected dividend growth rate during the subsequent constant growth period. True. False. Question 3 An increase in a firm’s expected growth rate would normally cause its required rate of return to Increase. Decrease. Stay constant. Possibly increase, possibly decrease, or possibly have no effect. Question 4 Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC)? Newly-issued common equity Preferred stock Long-term…
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