Constant Growth Stocks Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The growth in earnings per share is primarily resultant of the growth in

1. dividends
2. asset value
3. fundamental value
4. yearly value

MCQ 2: An amount of company retain earnings, return on equity and inflation are factors which effect

1. earnings growth
2. return on assets
3. return on sales
4. return on value

MCQ 3: The constant growth model would not be used in the condition if growth rate is

1. greater than dividend paid
2. equal to realized rate of return
3. less than realized rate of return
4. greater than realized rate of return

MCQ 4: An actual rate of return is subtracted from expected growth rate then it is divided from dividend stockholders expect use for calculating

1. dividend growth model
2. actual growth model
3. constant growth model
4. variable growth model