Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
How will the price of a stock be affected if the dividend growth rate is decreased?
|
decrease
|
|
|
Which one of the following will increase the current residual income of a firm?
|
a decrease in the required return on the firm's equity
|
|
|
Which one of the following models can be used to value the stock of a firm that maintains a one hundred percent retention ratio?
|
residual income
|
|
|
residual income
|
a method for valuing stock in a company that does not pay dividends.
|
|
|
clean surplus relationship
|
an accounting relationship in which earnings minus dividends equals the change in book value per share
|
|
|
Economic Value Added
|
a financial performance measure based on the difference between a firm's actual earnings and recquired earnings
|
|
|
which have the same meaning as the term, Economic value added
|
I. Abnormal earnings
II. Residual income III. value created by a firm in period t IV. EPSt-Bt-1 x k |
|
|
Which one of the following correctly expresses the clean surplus relationship?
|
The change in book value per share is equal to earnings per share minus dividends.
|
|
|
Which one of the following statements related to the price-earnings (P/E) ratio is correct?
|
The earnings yield is the inverse of the P/E ratio.
|
|
|
Which one of the following is used as an indicator that a firm has good-quality earnings?
|
cash flow per share that exceeds earnings per share
|
|
|
Which one of the following is the most common definition of cash flow as used in the price-cash flow ratio?
|
net income + Depr.
|
|
|
The price-sales ratio helps measure the ability of a firm to generate:
|
Revenue growth
|
|
|
You would like to know the value of a firm's equity today in relation to the cost of that equity.
|
price-book
|
