Method used in valuing common stock
Financial Management
1. Which of the following is not a method used in valuing common stock?
Dividend Growth Model
Free cash Flow Valuation Model
Market Multiples
Residual Dividend Model
2. If the risk-free rate is 4%, the market risk premium is 6%, what is the
required rate of return on a stock with a beta of 1.5?
2%
10%
13%
11.5%
