A+ Answers

1. ________________ businesses will be negatively impacted by a strong dollar.

a. Retailing

b. Import

c. Export

d. Automotive

2. The single most important issue in the stock valuation process is a company’s:

a. past earnings record.

b. historic dividend growth rate.

c. expected future returns.

d. capital structure.

3. The value of a stock is a function of:

a. future returns.

b. historic dividend growth rate.

c. most recent earnings per share.

d. past returns.

4. ___________ will most directly influence a company’s market value.

a. The state of the economy

b. The book value of its assets

c. The use of financial leverage

d. Its future cash flows