Sources of Funding Growth: Equity
Which of the following variables is not used to compute the price-to-earnings ratio?
Debt bond
Assets
Earnings per share
Bonds payable
Dividen stock
is not a type of equity.
Which of the following is a characteristic of an equity?
Pays a coupon interest rate
Provides the right to appoint board members
Has a fixed value
Has a maturity period
Dividends
refers to the return from the common stock.
Which of the following variables is used in a free cash flow model?
Operating cash flow
Marketable securities
Inventory
Weighted average cost of capital (WACC)
Which of the following is an advantage of issuing equity?
It increases the book value of the firm.
It improves asset turnover.
The firm can take advantage of undervalued stock price.
It improves sales.
Which of the following is a disadvantage of issuing equity?
It improves the receivable turnover.
It maintains a stable bond rating.
It improves sales.
Equity reduces the price-to-earnings ratio.
Common types of stocks include which of the following?
Treasury stock
Marketable stock
Board stock
Long-term stock
Which of the following variables is used in a dividend growth model?
Tax rate
Debt
Long-term assets
