1.The most appropriate discount rate to use when applying a FCFE valuation model is the __________. (Points : 4) required rate of return on equity WACC risk-free rate required rate of return on equity...

1.The most appropriate discount rate to use when applying a FCFE valuation model is the __________. (Points : 4)        required rate of return on equity        WACC        risk-free rate        required rate of return on equity or risk-free rate depending on the debt level of the firm        None of these is correct 2. An analyst has determined that the intrinsic value of Dell stock is $34 per share using the capitalized earnings model. If the typical P/E ratio in the computer industry is 27, then it would be reasonable to assume the expected EPS of Dell in the coming year is _____. (Points : 4)        $3.63        $4.44        $14.40        $1.26        None of these is correct 3. You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both $3.50 in dividends and $42 from the sale of the stock at the end of the year. The maximum price you would pay for the stock today is _____ if you wanted to earn a 10% return. (Points : 4)        $23.91        $24.11        $26.52        $27.50        None of these is correct 4. Zero had a FCFE of $4.5M last year and has 2.25M shares outstanding. Zero's required return on equity is 10% and WACC is 8.2%. If FCFE is expected to grow at 8% forever, the intrinsic value of Zero's shares are ___________. (Points : 4)        $108.00        $1080.00        $26.35        $14.76        None of these is correct 5. High Speed Company has an expected ROE of 15%. The dividend growth rate will be ________ if the firm follows a policy of paying 50% of earnings in the form of dividends. (Points : 4)        3.0%        4.8%        7.5%        6.0%        None of these is correct 6. Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year. Dividends are expected to decline at the rate of 2% per year. The risk-free rate of return is 6% and the expected return on the market portfolio is 14%. The stock of Old Quartz Gold Mining Company has a beta of -0.25. The intrinsic value of the stock is _____. (Points : 4)        $80.00        $133.33        $200.00        $400.00        None of these is correct 7. You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both $0.75 in dividends and $16 from the sale of the stock at the end of the year. The maximum price you would pay for the stock today is _____ if you wanted to earn a 12% return. (Points : 4)        $23.91        $14.96        $26.52        $27.50        None of these is correct 8. A preferred stock will pay a dividend of $3.50 in the upcoming year, and every year thereafter, i.e., dividends are not expected to grow. You require a return of 11% on this stock. Use the constant growth DDM to calculate the intrinsic value of this preferred stock. (Points : 4)        $0.39        $0.56        $31.82        $56.25        None of these is correct