QUESTION 1 You would find the payment of dividends in the statement of cash flow under: A. cash flows from operating activities. B. cash flows from investing activities. C. cash flows from financing activities. D. cash flows from purchasing activities. E. cash flows from selling activities.
QUESTION 3 Which of the following is the proper order of the industry life cycle? A. Development, growth, expansion, maturity, decline B. Expansion, growth, development, maturity, decline C. Development, expansion, growth, maturity, decline D. Expansion, development, growth, maturity, decline E. Growth, development, expansion, maturity, decline.
QUESTION 4 The use of many valuation models provides the analyst with: A. one model that gives the right answer. B. multiple models of how the market might value the firm's stock price. C. a confusing array of answers. D. the ability to choose the best model that matches his or her previous judgment.
QUESTION 6 The pure, short-term earnings model: A. ignores present value analysis and its long-term forecasts of dividends and earnings per share. B. uses the past three months to estimate earnings per share. C. disregards the long-term growth forecasts for earnings per share. D. uses the payout ratio and return on equity to derive the P/E ratio.