1、权益证券投资：行业与公司分析(二)及答案解析(总分：50.00，做题时间：90 分钟)一、单项选择题(总题数：50，分数：50.00)1.All else equal, which of the following would most likely cause a firm“s price-earnings ratio to decline?（分数：1.00）A.The level of inflation is expected to decline.B.The dividend payout ratio increases.C.The yield on Treasury bills in
2、creases.2.Which of the following statements about stock valuation is least likely correct?（分数：1.00）A.If estimated value the market price, buy the stock : it“s under priced.B.If the expected rate of return the required rate, buy the stock; it“s under priced.C.If the expected rate of return the requir
3、ed rate, don“t buy the stock; it“s under priced.3.Study the following information, calculate the expected rate of return. index is now selling at $490. market index multiplier is expected to be 5X. index earnings is expected to be $100. dividend payment is expected to be $40.（分数：1.00）A.10%.B.20%.C.3
4、0%.4.Which of the following is NOT an assumption of the constant growth dividend discount model (DDM)?（分数：1.00）A.The growth rate of the firm is higher than the overall growth rate of the economy.B.ROE is constant.C.Dividend payout is constant.5.All of the following factors affects the firm“s P/E rat
5、io EXCEPT:（分数：1.00）A.the expected interest rate on the bonds of the firm.B.growth rates of dividends.C.expected dividend payout ratio.6.Baker Computer earned $6.00 per share last year, has a retention ratio of 55 percent, and a return on equity (ROE) of 20 percent. Assuming their required rate of re
6、turn is 15 percent, how much would an investor pay for Baker on the basis of the earnings multiplier model?（分数：1.00）A.$173.90.B.Need growth rate to complete calculation.C.$74.93.7.Day and Associates is experiencing a period of abnormal growth. The last dividend paid by Day was $0.75. Next year, they
7、 anticipate growth in dividends and earnings of 25 percent followed by negative 5 percent growth in the second year. The company will level off to a normal growth rate of 8 percent in year three and is expected to maintain an 8 percent growth rate for the foreseeable future. Investors require a 12 p
8、ercent rate of return on Day. What is the approximate amount that an investor would be willing to pay today for the two years of abnormal dividends?（分数：1.00）A.$1.55.B.$1.83.C.$1.62.8.Assume that a firm has an expected dividend payout ratio of 20%, a required rate of return of 9% , and an expected di
9、vidend growth of 5%. What is the firm“s estimated price-to-earnings (P/E) ratio?（分数：1.00）A.5.00.B.10.00.C.20.00.9.Given the following estimated financial results, value the stock of Fish Chips, Inc. , using the infinite period dividend discount model (DDM). Sales of $1000000 Earnings of $150000 Tota
10、l assets of $800000 Equity of $400000 Dividend payout ratio of 60.0% Average shares outstanding of 75000 Real risk free interest rate of 4.0% Expected inflation rate of 3.0% Expected market return of 13.0% Stock Beta at 2.1 The per share value of Fish Chips stock is approximately: (Note: Carry calcu
11、lations out to at least 3 decimal places. )（分数：1.00）A.$17.91.B.$26.86.C.-$26.39.10.All of the following variables affect the price-to-cash flow ratio EXCEPT:（分数：1.00）A.dividend rate.B.depreciation rate.C.growth rate.11.Which of the following would NOT be a reason for market, industry, and company an
12、alysis?（分数：1.00）A.Firms within a given industry perform differently.B.The market is generally a very important component of security returns.C.Single industries perform consistently over time.12.An analyst gathered the following information about Weston Chemical“s stock: Estimated sales per share =
13、$12.19 Earnings before interest, taxes, depreciation, and amortization (EBITDA) = 73% Interest expense per share = $2.07 Depreciation expense per share = $6.21 The tax rate =35% Weston“s estimated Earnings per Share (EPS) is closest to?（分数：1.00）A.$0.40.B.$2.54.C.$3.11.13.An analyst gathered the foll
14、owing information about a company: Net profit margin 5.0% Total asset turnover 2.0 Total assets/equity 2.5 Beta for the company“s stock 1.5 Expected rate of return on the market index 10.0% Risk-free rate of return 5.0% The analyst expects the information above to accurately reflect the future. If t
15、he company wants to achieve a growth rate of at least 15% without changing its capital structure or issuing new equity, the maximum dividend payout ratio for the company would be closest to:（分数：1.00）A.0.0%.B.12.5%.C.40.0%.14.An analyst gathered the following information about an industry. The indust
16、ry beta is 0.9. The industry profit margin is 8%, the total asset turnover ratio is 1.5, and the leverage multiplier is 2. The dividend payout ratio of the industry is 50%. The risk-free rate is 7% and the expected market return is 15%. The industry P/E is closest to:（分数：1.00）A.12.00.B.14.20.C.22.73
17、.15.The following data pertains to an investor“s stock: The stock will pay no dividends for two years. The dividend three years from now is expected to be $1. Dividends are expected to grow at a 7% rate from that point onward. If the investor requires a 17 percent return on their investments, how mu
18、ch will the investor be willing to pay for this stock now?（分数：1.00）A.$6.24.B.$7.31.C.$8.26.16.The risk-free rate is 5 percent, the market rate is 12 percent, and the beta of a stock is 0.5, what would happen to the required rate of return if the inflation premium increased by 2 percent? It would:（分数
19、：1.00）A.increase to 15.B.decrease to 8.5.C.increase to 10.5.17.All else equal, a firm will have a higher Price-to-Earnings (P/E) multiple if:（分数：1.00）A.retention ratio is higher.B.risk-free rate is higher.C.the stock“s beta is lower18.Estimate an earnings multiplier for ABC Company, assuming a divid
20、end payout ratio of 50%, a required return of 12% , and a growth rate of 7%.（分数：1.00）A.10.00.B.12.00.C.15.57.19.An analyst gathered the following data for the Parker Corp. for the year ended December 31, 2008: EPS 2008 =$1.75 Dividends 2008 =$1.40 Beta parker =1.17 Long-term bond rate = 6.75% Rate o
21、f return S it“s under priced.C.If the expected rate of return the required rate, don“t buy the stock; it“s under priced.解析：Buy (sell) a stock when the estimated value is more (less) than the market price.3.Study the following information, calculate the expected rate of return. index is now selling a
22、t $490. market index multiplier is expected to be 5X. index earnings is expected to be $100. dividend payment is expected to be $40.（分数：1.00）A.10%. B.20%.C.30%.解析：Step1: Calculate the ending index value = $1005=$500 Step2: Calculate the expected return. E(R 1 )=Dividends + (Ending value - Beginning
23、value)/(Beginning value)=40+(500-490)/490 =0.1 or 10%4.Which of the following is NOT an assumption of the constant growth dividend discount model (DDM)?（分数：1.00）A.The growth rate of the firm is higher than the overall growth rate of the economy. B.ROE is constant.C.Dividend payout is constant.解析：Oth
24、er assumptions of the DDM are: dividends grow at a constant rate and the growth rate continues for an infinite period.5.All of the following factors affects the firm“s P/E ratio EXCEPT:（分数：1.00）A.the expected interest rate on the bonds of the firm. B.growth rates of dividends.C.expected dividend pay
25、out ratio.解析：The factors that affect the P/E ratio are the same factors that affect the value of a firm in the infinite growth dividend discount model. The expected interest rate on the bonds is not a significant factor affecting the P/E ratio.6.Baker Computer earned $6.00 per share last year, has a
26、 retention ratio of 55 percent, and a return on equity (ROE) of 20 percent. Assuming their required rate of return is 15 percent, how much would an investor pay for Baker on the basis of the earnings multiplier model?（分数：1.00）A.$173.90.B.Need growth rate to complete calculation.C.$74.93. 解析：g=Retent
27、ion ROE=0.550.2=0.11 P/E=0.45/(0.15-0.11)=11.25 Next year“s earnings E 1 =E 0 (1+g)=6.001.11=$6.66 Next years dividend (D 1 )=E 1 Payout ratio =$6.660.45=$3.00 P=D 1 /(k-g)=$3.00/(0.15-0.11)=$74.937.Day and Associates is experiencing a period of abnormal growth. The last dividend paid by Day was $0.
28、75. Next year, they anticipate growth in dividends and earnings of 25 percent followed by negative 5 percent growth in the second year. The company will level off to a normal growth rate of 8 percent in year three and is expected to maintain an 8 percent growth rate for the foreseeable future. Inves
29、tors require a 12 percent rate of return on Day. What is the approximate amount that an investor would be willing to pay today for the two years of abnormal dividends?（分数：1.00）A.$1.55. B.$1.83.C.$1.62.解析：First find the abnormal dividends and then discount them back to the present. $0.751.25=$0.93750
30、.95=$0.89. D 1 =$0.9375; D 2 =$0.89. At this point you can use the cash flow keys with CF 0 =0, CF 1 =$0.9375 and CF 2 =$0.89. Compute for NPV with I/Y=12. NPV =$1.547. Alternatively, you can put the dividends in as future values, solve for present values and add the two together.8.Assume that a fir
31、m has an expected dividend payout ratio of 20%, a required rate of return of 9% , and an expected dividend growth of 5%. What is the firm“s estimated price-to-earnings (P/E) ratio?（分数：1.00）A.5.00. B.10.00.C.20.00.解析：The price-to-earnings (P/E) ratio is equal to (D 1 /E 1 )/(k-g)=0.2/(0.09-0.05)=5.00
32、.9.Given the following estimated financial results, value the stock of Fish Chips, Inc. , using the infinite period dividend discount model (DDM). Sales of $1000000 Earnings of $150000 Total assets of $800000 Equity of $400000 Dividend payout ratio of 60.0% Average shares outstanding of 75000 Real r
33、isk free interest rate of 4.0% Expected inflation rate of 3.0% Expected market return of 13.0% Stock Beta at 2.1 The per share value of Fish Chips stock is approximately: (Note: Carry calculations out to at least 3 decimal places. )（分数：1.00）A.$17.91.B.$26.86. C.-$26.39.解析：DDM formula: P 0 =D 1 /(k e
34、 -g) D 1 =( Earnings Payout ratio)/average number of shares outstanding = ($1500000.60)/75000=$1.20 Nominal risk - free rate=(1+real risk free rate)(1+expected inflation)-1=1.041.03-1=0.0712, or 7.12% k e =nominal risk free rate + beta ( expected market return - nominal risk free rate ) =7.12%+2.1(1
35、3.0%-7.12%)=0.19468 Retention=(1-Payout)=1-0.60=0.40. ROE = (net income/sales) (sales/total assets) (total assets/equity) = (150000/1000000)(1000000/800000)(800000/400000)=0.375 g=(retention rate ROE)=0.3750.40=0.15 calculate: P 0 =D 1 /(k e -g)=$1.20/(0.19468-0.15)=26.86.10.All of the following var
36、iables affect the price-to-cash flow ratio EXCEPT:（分数：1.00）A.dividend rate. B.depreciation rate.C.growth rate.解析：Including dividends and capital expenditures would be free cash flow. Normally cash flow from operations is used in price-to-cash flow ratios. Dividends do not affect the calculation.11.W
37、hich of the following would NOT be a reason for market, industry, and company analysis?（分数：1.00）A.Firms within a given industry perform differently.B.The market is generally a very important component of security returns.C.Single industries perform consistently over time. 解析：The second step in the t
38、op-down, three-step valuation process is to identify those industries that will prosper or suffer during the time frame of your economic forecast. You should consider the cyclical nature of the industry under study. Some industries are cyclical, some are contra-cyclical and some are non-cyclical. Fi
39、nally, your analysis should also account for foreign economic shifts. In general, an industry“s prospects within the global business environment determine how well or poorly individual firms in the industry do. Thus, industry analysis should precede company analysis.12.An analyst gathered the follow
40、ing information about Weston Chemical“s stock: Estimated sales per share = $12.19 Earnings before interest, taxes, depreciation, and amortization (EBITDA) = 73% Interest expense per share = $2.07 Depreciation expense per share = $6.21 The tax rate =35% Weston“s estimated Earnings per Share (EPS) is
41、closest to?（分数：1.00）A.$0.40. B.$2.54.C.$3.11.解析：Estimate earnings per share (EPS) as: (sales per share) (EBITDA %) - depreciation per share - interest per share 1 - tax rate = ($12.190.73-$6.21-$2.07)(1-0.35)=$0.4022=$0.40.13.An analyst gathered the following information about a company: Net profit
42、margin 5.0% Total asset turnover 2.0 Total assets/equity 2.5 Beta for the company“s stock 1.5 Expected rate of return on the market index 10.0% Risk-free rate of return 5.0% The analyst expects the information above to accurately reflect the future. If the company wants to achieve a growth rate of a
43、t least 15% without changing its capital structure or issuing new equity, the maximum dividend payout ratio for the company would be closest to:（分数：1.00）A.0.0%.B.12.5%.C.40.0%. 解析：The growth rate for the company is the product of the return on equity (ROE) and the retention rate. The retention rate
44、is( 1 - the dividend payout ratio). The ROE for the company is 5.0%2.02.5=25%. The retention rate must be at least 60% to achieve a growth of at least 15% (0.6025%=15%). If the retention rate is at least 60% , the maximum dividend payout ratio is 40%.14.An analyst gathered the following information
45、about an industry. The industry beta is 0.9. The industry profit margin is 8%, the total asset turnover ratio is 1.5, and the leverage multiplier is 2. The dividend payout ratio of the industry is 50%. The risk-free rate is 7% and the expected market return is 15%. The industry P/E is closest to:（分数
46、：1.00）A.12.00.B.14.20.C.22.73. 解析：Using the CAPM: k i =7%+0.9(0.15-0.07)=14.2%. Using the DuPont equation: ROE =8%1.52=24%. g = retention ratio = ROE=0.5024%=12%. P/E=0.5/(0.142-0.12)=22.73.15.The following data pertains to an investor“s stock: The stock will pay no dividends for two years. The divi
47、dend three years from now is expected to be $1. Dividends are expected to grow at a 7% rate from that point onward. If the investor requires a 17 percent return on their investments, how much will the investor be willing to pay for this stock now?（分数：1.00）A.$6.24.B.$7.31. C.$8.26.解析：Time line=$0 now
48、; $0 in year 1; $0 inyear2; $1 in year 3. 16.The risk-free rate is 5 percent, the market rate is 12 percent, and the beta of a stock is 0.5, what would happen to the required rate of return if the inflation premium increased by 2 percent? It would:（分数：1.00）A.increase to 15.B.decrease to 8.5.C.increa
49、se to 10.5. 解析：k 0 =5+0.5(12-5)=8.5; k 1 =7+0.5(14-7)=10.5.17.All else equal, a firm will have a higher Price-to-Earnings (P/E) multiple if:（分数：1.00）A.retention ratio is higher.B.risk-free rate is higher.C.the stock“s beta is lower 解析：To increase P/E ratio, lower the retention ratio, lower k or increase g. A lower beta would lead to a lower stock risk premium and a lower k.18.Estimate an earnings multiplier for ABC Company, assuming a dividend payout ratio of 50%, a required return of 12% , and a growth rate of 7%.（分数：1.0
