Which of the following are assumptions of the simple CAPM model?
I. Individual trades of investors do not affect a stock's price.
II. All investors plan for one identical holding period.
III. All investors analyze securities in the same way and share the same economic view of the world.
IV. All investors have the same level of risk aversion.
A. I, II, and IV only
B. I, II, and III only
C. II, III, and IV only
D. I, II, III, and IV
B. I, II, and III only
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An example of a tangible benefit is
a. increased customer satisfaction b. more current information c. reduced inventories d. faster response to competitor actions
Firehawk Corporation had net income of $560,000 in 20x5 and paid dividends of $440,000 on 200,000 shares of outstanding common stock. Total stockholders' equity at the end of 20x5 was $2,060,000 and the market price for each share of Firehawk's stock was $58 throughout 20x5. Additionally, the company paid preferred dividends of $2.40 per share during 20x5. Based on this information, what is the
dividend yield on Firehawk's stock? A) 21.36% B) 78.57% C) 3.79% D) 7.93%
________ refers to "self-interest seeking with guile
a. Law of legitimate cross-purposes b. Law of perpetual change c. Opportunism d. Alignment
On the statement of cash flows, the cash flows from financing activities section would include:
A) receipts from the sale of investments. B) payments for the acquisition of investments. C) receipts from a note receivable. D) receipts from the issuance of capital stock.