Equity

Which of the following statements about stocks is FALSE?

• Stocks must always pay dividends
• Stocks provide return through dividend income and price growth
• Preferred stocks pay dividend before common stocks
• Not all stocks give owners the right to vote

Stock Exchange of Thailand's Total Return Index grows ______ the normal SET Index.

• faster than than
• slower than
• at the same rate as
• A bond certificate must specify the name of its holder

Which of the following statements about stocks is FALSE?

• Every companies must have preferred shareholders
• Every companies must have shareholders
• Public companies have many shareholders
• Not all public companies are listed in the stock exchange

Company X currently has book value per share of THB 20 and cost of equity of 12%. If its ROE is 15% and dividend payout ratio is 80%, its next dividend payment is:

• 2.40

• 3.00

• 0.60

• 1.92

Company X currently has book value per share of THB 20 and cost of equity of 12%. If its ROE is 15% and dividend payout ratio is 80%, its sustainable growth rate is:

• 3%

• 2.4%

• 12%

• 9.6%

Company X currently has book value per share of THB 20 and cost of equity of 12%. If its ROE is 15% and dividend payout ratio is 80%, its share value is closest to:

• 26.66

• 33.33

• 20.00

• 25.00

Based on the information provided, dividend in year 3 will be:

• 1.76

• 2.81

• 1.92

• 2.20

Based on the information provided, if the cost of equity is 16%, the stock value is closest to:

• 11.15

• 14.20

• 9.33

• 10.00

Suppose a company has net income of THB 1,500 million with 500 million shares outstanding. If its PE ratio is 16x, its price is:

• 48.00

• 24.00

• 16.00

• 3.00

If a company has high PE ratio, it is most likely because …

• The company is expected to grow very fast
• The company's stock is overpriced
• The company has very few shareholders
• The company is very profitable