Which one of the following statements is NOT true about zero-growth stocks?
a. Dividend stays constant over time.
b. The cash flow pattern resembles a perpetuity with a constant cash flow.
c. Dividend payment pattern shows constant growth over time.
d. There is no growth in dividends over time.
Answer: C
Finance
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- Which of the following is not a method of "benchmarking"?
- Return on Equity: In the latest year, Photon, Inc. reported $276,000 in net income. The firm maintains a debt ratio of 30% and has total assets of $3,000,000. What is Photon's return on equity? (Round off to the nearest 0.1%)
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- Profitability ratio: Juventus Corp has total assets of $4,744,288, total debt of $2,912,000, and net sales of $7,212,465. Their net profit margin for the year is 18 percent. What is Juventus's ROA?
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