货币金融学chapter-7英文习题

1Copyright©2016PearsonEducation,Ltd.EconomicsofMoney,Banking,andFinancialMarkets,11e,GlobalEdition(Mishkin)Chapter7TheStockMarket,theTheoryofRationalExpectations,andtheEfficientMarketHypothesis7.1ComputingthePriceofCommonStock1)Astockholder'sownershipofacompany'sstockgiveshertherighttoA)voteandbetheprimaryclaimantofallcashflows.B)voteandbetheresidualclaimantofallcashflows.C)manageandassumeresponsibilityforallliabilities.D)voteandassumeresponsibilityforallliabilities.Answer:BAACSB:AnalyticalThinking2)Stockholdersareresidualclaimants,meaningthattheyA)havethefirstpriorityclaimonallofacompany'sassets.B)areliableforallofacompany'sdebts.C)willnevershareinacompany'sprofits.D)receivetheremainingcashflowafterallotherclaimsarepaid.Answer:DAACSB:AnalyticalThinking3)PeriodicpaymentsofnetearningstoshareholdersareknownasA)capitalgains.B)dividends.C)profits.D)interest.Answer:BAACSB:AnalyticalThinking4)ThevalueofanyinvestmentisfoundbycomputingtheA)presentvalueofallfuturesales.B)presentvalueofallfutureliabilities.C)futurevalueofallfutureexpenses.D)presentvalueofallfuturecashflows.Answer:DAACSB:AnalyticalThinking5)Intheone-periodvaluationmodel,thevalueofashareofstocktodaydependsuponA)thepresentvalueofboththedividendsandtheexpectedsalesprice.B)onlythepresentvalueofthefuturedividends.C)theactualvalueofthedividendsandexpectedsalespricereceivedinoneyear.D)thefuturevalueofdividendsandtheactualsalesprice.Answer:AAACSB:AnalyticalThinking2Copyright©2016PearsonEducation,Ltd.6)Intheone-periodvaluationmodel,thecurrentstockpriceincreasesifA)theexpectedsalespriceincreases.B)theexpectedsalespricefalls.C)therequiredreturnincreases.D)dividendsarecut.Answer:AAACSB:ReflectiveThinking7)Intheone-periodvaluationmodel,anincreaseintherequiredreturnoninvestmentsinequityA)increasestheexpectedsalespriceofastock.B)increasesthecurrentpriceofastock.C)reducestheexpectedsalespriceofastock.D)reducesthecurrentpriceofastock.Answer:DAACSB:ReflectiveThinking8)Inaone-periodvaluationmodel,adecreaseintherequiredreturnoninvestmentsinequitycausesa(n)________inthe________priceofastock.A)increase;currentB)increase;expectedsalesC)decrease;currentD)decrease;expectedsalesAnswer:AAACSB:ReflectiveThinking9)Usingtheone-periodvaluationmodel,assumingayear-enddividendof$0.11,anexpectedsalespriceof$110,andarequiredrateofreturnof10%,thecurrentpriceofthestockwouldbeA)$110.11.B)$121.12.C)$100.10.D)$100.11Answer:CAACSB:AnalyticalThinking10)Usingtheone-periodvaluationmodel,assumingayear-enddividendof$1.00,anexpectedsalespriceof$100,andarequiredrateofreturnof5%,thecurrentpriceofthestockwouldbeA)$110.00.B)$101.00.C)$100.00.D)$96.19.Answer:DAACSB:AnalyticalThinking3Copyright©2016PearsonEducation,Ltd.11)Inthegeneralizeddividendmodel,iftheexpectedsalespriceisinthedistantfutureA)itdoesnotaffectthecurrentstockprice.B)itismoreimportantthandividendsindeterminingthecurrentstockprice.C)itisequallyimportantwithdividendsindeterminingthecurrentstockprice.D)itislessimportantthandividendsbutstillaffectsthecurrentstockprice.Answer:AAACSB:AnalyticalThinking12)Inthegeneralizeddividendmodel,afuturesalespricefarinthefuturedoesnotaffectthecurrentstockpricebecauseA)thepresentvaluecannotbecomputed.B)thepresentvalueisalmostzero.C)thesalespricedoesnotaffectthecurrentprice.D)thestockmayneverbesold.Answer:BAACSB:AnalyticalThinking13)Inthegeneralizeddividendmodel,thecurrentstockpriceisthesumofA)theactualvalueofthefuturedividendstream.B)thepresentvalueofthefuturedividendstream.C)thepresentvalueofthefuturedividendstreamplustheactualfuturesalesprice.D)thepresentvalueofthefuturesalesprice.Answer:BAACSB:AnalyticalThinking14)UsingtheGordongrowthmodel,astock'scurrentpricewillincreaseifA)thedividendgrowthrateincreases.B)thegrowthrateofdividendsfalls.C)therequiredrateofreturnonequityrises.D)theexpectedsalespricerises.Answer:AAACSB:ReflectiveThinking15)UsingtheGordongrowthmodel,astock'scurrentpricedecreaseswhenA)thedividendgrowthrateincreases.B)therequiredreturnonequitydecreases.C)theexpecteddividendpaymentincreases.D)thegrowthrateofdividendsdecreases.Answer:DAACSB:ReflectiveThinking4Copyright©2016PearsonEducation,Ltd.16)IntheGordongrowthmodel,adecreaseintherequiredrateofreturnonequityA)increasesthecurrentstockprice.B)increasesthefuturestockprice.C)reducesthefuturestockprice.D)reducesthecurrentstockprice.Answer:AAACSB:ReflectiveThinking17)UsingtheGordongrowthformula,ifD1is$2.00,keis12%or0.12,andgis10%or0.10,thenthecurrentstockpriceisA)$20.B)$50.C)$100.D)$150.Answer:CAACSB:AnalyticalThinking18)UsingtheGordongrowthformula,ifD1is$1.00,keis10%or0.10,andgis5%or0.05,thenthecurrentstockpriceisA)$10.B)$20.C)$30.D)$40.Answer:BAACSB:AnalyticalThinking19)UsingtheGordongrowthmodel,ifD1is$.50,keis7%,andgis5%,thenthepresentvalueofthestockisA)$2.50.B)$25.C)$50.D)$46.73.Answer:BAACSB:AnalyticalThinking20)OneoftheassumptionsoftheGordonGrowthModelisthatdividendswillcontinuegrowingat________rate.A)anincreasingB)afastC)aconstantD)anescalatingAnswer:CAACSB:AnalyticalThinking5Copyright©2016PearsonEducation,Ltd.21)IntheGordonGrowthModel,thegr