RELATIVE valuation measures commonly used by market participants include: the estimated value of common stock is the: DISCOUNTED CASH FLOW techniques used in valuing common stock are based on: All of the following are interchangeable terms except for: a

1. P/E ratio
   Price/book valuse
   Sales/price ratios

RELATIVE valuation measures commonly used by market participants include:

2. present value of all expected cash flows

the estimated value of common stock is the:

3. present value analysis.

DISCOUNTED CASH FLOW techniques used in valuing common stock are based on:

4. coupon rate

All of the following are interchangeable terms except for:
a. discount rate
b. coupon rate
c. required rate of return
d. capitalization rate

5. c. The model does not consider that dividends may not be paid

Which of the following is a problem using the dividend discount model to value common stock?
a. The model does not account for the risk of the stock.
b. The model does not consider the present value of the dividends.
c. The model does not consider that dividends may not be paid
d. The model does not account for small dividends.

6. The statement is incorrect - infinite growth is not a problem with the dividend discount model because at reasonably high discount rates, such as 12 percent, dividends received in the distant future are worth very little today

Infinite growth is a problem with the dividend discount model because:

7. estimated growth rate in dividends.

The CONSISTENT GROWTH DIVIDEND model uses the:

8. is equivalent to the valuation model for preferred stock.

The ZERO-GROWTH DIVIDEND model:

9. multiple growth model.

The dividend model that is most appropriate for a young company that pays small dividends now but is expected to increase dividends in a few years is the:

10. two

Under the multiple growth model, at least ------ different growth rates are used.