## Podcast Beta

## Questions and Answers

What type of shares are the zero-growth model useful for valuing?

What is the required rate of return for Investor CDE in the zero-growth model illustration?

What is the primary focus of share valuation techniques?

What is the assumption about the growth rate in the constant growth model?

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What is the name of the model also known as the constant growth model?

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What is the period valuation model used for?

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When is the first dividend assumed to be received in the constant growth model?

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What is the discounted cash flow approach based on?

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What is the expected dividend growth rate for Bavarian Sausage in the constant growth model illustration?

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What is the required rate of return on ordinary shares used for in the period valuation model?

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What is the dividend-based valuation technique used for?

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What is the value of the shares of Flix Company based on BSA PA's computation?

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What is the dividend per share for the year 2021?

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What is the limitation of the zero-growth and constant growth model?

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What is the fourth step in the variable growth model?

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What is the expected dividend growth rate of Vin Company in the next 3 years?

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What is the purpose of the price-earnings ratio?

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What is the required return used by Vic in evaluating his investments?

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What is the price of the stock today if the required return on investment is 14%?

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What is the implied dividend growth rate for Bavarian Sausage if the stock sells for $34.37?

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If the cost of capital is 10% and the dividend is expected to grow at 3% indefinitely, what is the price of the firm's stock 4 years from today?

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If the required return on the stock investment is 14%, what should be the price of the stock in 5 years?

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What is the dividend payment expected next year for Bavarian Sausage?

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What is the expected dividend growth rate for Bavarian Sausage?

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What is the primary purpose of using the average P/E ratio of an industry?

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A high P/E ratio may indicate that the market expects:

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What is a limitation of share valuation models?

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What happens when companies assume more risks?

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What should investors be wary of when using valuation models?

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What is the formula for calculating the price-to-earnings ratio?

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