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MGT201 VU Current Midterm Fall 2012 Paper 12 December 2012

Mgt201 VU Current Midterm Fall 2012 Paper – 12 December 2012

What do you mean by yield to maturity (YTM) of a bond? Explain briefly.
Explain briefly the Constant Growth Dividends Model of common stocks valuation.
Why a person should invest in shares? Give reasons.
H Corporation’s stock currently sells for Rs.20 a share. The stock just paid a dividend of Rs.2 a share (Do = Rs.2). the dividend is expected to grow at a constant rate of 11% a year. · What stock price is expected 1 year from now? · What would be the required rate of return on company’s stock?

What do you mean by yield to maturity (YTM) of a bond? Explain briefly.
Explain briefly the Constant Growth Dividends Model of common stocks valuation.
Why a person should invest in shares? Give reasons.
H Corporation’s stock currently sells for Rs.20 a share. The stock just paid a dividend of Rs.2 a share (Do = Rs.2). the dividend is expected to grow at a constant rate of 11% a year. · What stock price is expected 1 year from now? · What would be the required rate of return on company’s stock?

 

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