if you want to remove an article from website contact us from top.

    which one of the following is a common term for the market consensus value of the required return on a stock?

    James

    Guys, does anyone know the answer?

    get which one of the following is a common term for the market consensus value of the required return on a stock? from EN Bilgi.

    Which one of the following is a common term for the market consensus value of the required return on a stock? A. Dividend payout ratio B. Intrinsic value C. Market capitalization rate D. Plowback ratio.

    Answer to: Which one of the following is a common term for the market consensus value of the required return on a stock? A. Dividend payout ratio B....

    Business

    Which one of the following is a common term for the market consensus value of the required return...

    Which one of the following is a common term for the market consensus value of the required return... Question:

    Which one of the following is a common term for the market consensus value of the required return on a stock?

    A. Dividend payout ratio

    B. Intrinsic value

    C. Market capitalization rate

    D. Plowback ratio.

    Market Consensus

    A collective opinion about the forecasts of different aspects like price, profits of a company by expert analysts of the market is known as a market consensus. These forecasts are commonly calculated using statistical modeling.

    Answer and Explanation:

    Become a Study.com member to unlock this answer! Create your account

    View this answer

    Option C is right.

    A rate that is derived out of the multiplication of the number of shares by its price is known as market capitalization. Option C...

    See full answer below.

    Become a member and unlock all Study Answers

    Start today. Try it now

    Create an account

    Ask a question

    Our experts can answer your tough homework and study questions.

    Ask a question

    Search Answers

    Learn more about this topic:

    Market Capitalization: Definition & Formula

    from

    Chapter 6 / Lesson 30

    39K

    Market capitalization refers to the amount of worth a company has based on the stock market. Explore the definition and formula of market capitalization and discover an example.

    Related to this Question

    Related Answers Related Lessons Related Courses

    An investor is considering the purchase of a...

    As noted in the text, the overwhelming majority...

    A company has a share price of $22.15 and 118...

    Compute the value of shares from the following...

    Explore our homework questions and answers library

    Browse by subject

    Source : study.com

    Fin 332 Ch. 13 Flashcards

    Start studying Fin 332 Ch. 13. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

    Fin 332 Ch. 13

    14 studiers in the last day

    book value

    Click card to see definition 👆

    The accounting measure of a firm's equity value generated by applying accounting principles to asset and liability acquisitions is called ________.

    A. book value B. market value

    C. liquidation value

    D. Tobin's q

    Click again to see term 👆

    start-up phase

    Click card to see definition 👆

    The price-to-sales ratio is probably most useful for firms in which phase of the industry life cycle?

    A. Start-up phase B. Consolidation C. Maturity D. Relative decline

    Click again to see term 👆

    1/41 Created by bernardo_guillamon

    Terms in this set (41)

    book value

    The accounting measure of a firm's equity value generated by applying accounting principles to asset and liability acquisitions is called ________.

    A. book value B. market value

    C. liquidation value

    D. Tobin's q start-up phase

    The price-to-sales ratio is probably most useful for firms in which phase of the industry life cycle?

    A. Start-up phase B. Consolidation C. Maturity D. Relative decline

    cannot be determined from info given

    If a firm increases its plowback ratio, this will probably result in _______ P/E ratio.

    A. a higher B. a lower C. an unchanged

    D. The answer cannot be determined from the information given.

    growth opportunities

    The value of Internet companies based primarily on

    A. current profits B. Tobin's q

    C. growth opportunities

    D. replacement cost P/E multiplies

    New-economy companies generally have higher _______ than old-economy companies.

    A. book value per share

    B. P/E multiples C. profits D. asset values higher, lower

    P/E ratios tend to be _______ when inflation is ______.

    A. higher; higher B. lower; lower C. higher; lower

    D. They are unrelated.

    Most firms have a market-to-book ration above 1, but not all.

    Which one of the following statements about market and book value is correct?

    A. All firms sell at a market-to-book ratio above 1.

    B. All firms sell at a market-to-book ratio greater than or equal to 1.

    C. All firms sell at a market-to-book ratio below 1.

    D. Most firms have a market-to-book ratio above 1, but not all.

    fall

    Earnings yields tend to _______ when Treasury yields fall.

    A. fall B. rise C. remain unchanged D. fluctuate wildly

    market capitalization rate

    Which one of the following is a common term for the market consensus value of the required return on a stock?

    A. Dividend payout ratio

    B. Intrinsic value

    C. Market capitalization rate

    D. Plowback ratio

    book value per share

    Which one of the following is equal to the ratio of common shareholders' equity to common shares outstanding?

    A. Book value per share

    B. Liquidation value per share

    C. Market value per share

    D. Tobin's q

    the sum of the stock's expected capital gain and dividend yield is equal to the stock's required rate of return

    If a stock is correctly priced, then you know that ____________.

    A. the dividend payout ratio is optimal

    B. the stock's required return is equal to the growth rate in earnings and dividends

    C. the sum of the stock's expected capital gain and dividend yield is equal to the stock's required rate of return

    D. the present value of growth opportunities is equal to the value of assets in place

    will generate a positive alpha

    A stock has an intrinsic value of $15 and an actual stock price of $13.50. You know that this stock ________.

    A. has a Tobin's q value < 1

    B. will generate a positive alpha

    C. has an expected return less than its required return

    D. has a beta > 1

    All three should be willing to pay the same amount for the stock regardless of their holding period.

    Bill, Jim, and Shelly are all interested in buying the same stock that pays dividends. Bill plans on holding the stock for 1 year. Jim plans on holding the stock for 3 years. Shelly plans on holding the stock until she retires in 10 years. Which one of the following statements is correct?

    A. Bill will be willing to pay the most for the stock because he will get his money back in 1 year when he sells.

    B. Jim should be willing to pay three times as much for the stock as Bill will pay because his expected holding period is three times as long as Bill's.

    C. Shelly should be willing to pay the most for the stock because she will hold it the longest and hence will get the most dividends.

    D. All three should be willing to pay the same amount for the stock regardless of their holding period.

    1 only

    A firm that has an ROE of 12% is considering cutting its dividend payout. The stockholders of the firm desire a dividend yield of 4% and a capital gain yield of 9%. Given this information, which of the following statements is (are) correct?

    I. All else equal, the firm's growth rate will accelerate after the payout change.

    II. All else equal, the firm's stock price will go up after the payout change.

    III. All else equal, the firm's P/E ratio will increase after the payout change.

    A. I only B. I and II only

    Source : quizlet.com

    Which one of the following is a common term for the market consensus value of the required return on a stock?

    Which one of the following is a common term for the market consensus value of the required return on a stock?

    NAIMMCQ

    Quiz, Objective, Multiple Choice Question (MCQ), Test Bank Solution and Short Answers.

    NAIMMCQ Equity Valuation Which one of the following is a common term for the market consensus value of the required return on a stock?

    Which one of the following is a common term for the market consensus value of the required return on a stock?

    Equity Valuation

    Which one of the following is a common term for the market consensus value of the required return on a stock? 

    A. Dividend payout ratio

    B. Intrinsic value

    C. Market capitalization rate

    D. Plowback ratio Answer: C

    Equity Valuation

    ART has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback ratio of .20. Its earnings this year will be $3 per share. Investors expect a 12% rate of return on the stock. At what price would you expect ART to sell?

    A firm has a stock price of $54.75 per share. The firm's earnings are $75 million, and the firm has 20 million shares outstanding. The firm has an ROE of 15% and a plowback of 65%. What is the firm's PEG ratio?

    A firm increases its dividend plowback ratio. All else equal, you know that _____________.

    A stock is priced at $45 per share. The stock has earnings per share of $3 and a market capitalization rate of 14%. What is the stock's PVGO?

    Transportation stocks currently provide an expected rate of return of 15%. TTT, a large transportation company, will pay a year-end dividend of $3 per share. If the stock is selling at $60 per share, what must be the market's expectation of the constant-growth rate of TTT dividends?

    A common stock pays an annual dividend per share of $1.80. The risk-free rate is 5%, and the risk premium for this stock is 4%. If the annual dividend is expected to remain at $1.80 per share, what is the value of the stock?

    A firm has an earnings retention ratio of 40%. The stock has a market capitalization rate of 15% and an ROE of 18%. What is the stock's P/E ratio?

    A firm has PVGO of 0 and a market capitalization rate of 12%. What is the firm's P/E ratio?

    Sanders, Inc., paid a $4 dividend per share last year and is expected to continue to pay out 60% of its earnings as dividends for the foreseeable future. If the firm is expected to generate a 13% return on equity in the future, and if you require a 15% return on the stock, the value of the stock is _________.

    Everything else equal, which variable is negatively related to the intrinsic value of a company?

    A company with an expected earnings growth rate which is greater than that of the typical company in the same industry most likely has _________________.

    Assuming all other factors remain unchanged, __________ would increase a firm's price-earnings ratio.

    A firm's earnings per share increased from $10 to $12, its dividends increased from $4 to $4.40, and its share price increased from $80 to $100. Given this information, it follows that _________.

    Ace Frisbee Corporation produces a good that is very mature in the firm's product life cycles. Ace Frisbee Corporation is expected to pay a dividend in year 1 of $3, a dividend in year 2 of $2, and a dividend in year 3 of $1. After year 3, dividends are expected to decline at the rate of 2% per year. An appropriate required return for the stock is 8%. Using the multistage DDM, the stock should be worth __________ today.

    Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3 of $4. After year 3, dividends are expected to grow at the rate of 7% per year. An appropriate required return for the stock is 12%. Using the multistage DDM, the stock should be worth __________ today.

    Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of .5. Using the constant-growth DDM, the intrinsic value of the stock is _________.

    Caribou Gold Mining Corporation is expected to pay a dividend of $4 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of .5. Using the CAPM, the return you should require on the stock is _________.

    Interior Airline is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 10% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 13%. The stock of Interior Airline has a beta of 4. Using the constant-growth DDM, the intrinsic value of the stock is _________.

    Generally speaking, the higher a firm's ROA, the _________ the dividend payout ratio and the _________ the firm's growth rate of earn.

    Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 8% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 17%. The stock of Todd Mountain Development Corporation has a beta of .75. Using the constant-growth DDM, the intrinsic value of the stock is _________.

    Source : naimmcq.blogspot.com

    Do you want to see answer or more ?
    James 14 day ago
    4

    Guys, does anyone know the answer?

    Click For Answer