Ntu Career

Score 120 step to the fore of 120 points (100%) 1. pillage 10 place of 10 points Which of the following valuation measures is often used to compare familys which have no recogniseings? Price-to-book symmetry P/E ratio Price-to-cash flow ratio Price-to-sales ratio 2. award 10 out of 10 points When Googles part price reached $475 per share Google had a P/E ratio of active 68 and an estimated grocery store capitalization rate of 11. 5%. Google recompenses no dividends. What percentage of Googles extraction price was equal by PVGO? 92% 87% 77% 64% 3. award 10 out of 10 points A rigid is pass judgment to produce earnings next year of $3. 00 per share.It plans to reinvest 25% of its earnings at 20%. If the cost of equity if 11%, what should be the value of the stock? $27. 27 $50. 00 $66. 67 $70. 00 g = . 25 x . 20 = . 05 P = 3. 0/(. 11 . 05) = 50. 00 4. award 10 out of 10 points The gratis(p) cash flow to the firm is reported as $198 one million million million. The intere st expense to the firm is $15 million. If the measure rate is 35% and the net debt of the firm increased by $20 million, what is the market value of the firm if the FCFE grows at 3% and the cost of equity is 14%? $1,893 billion $1,893 billion $2,497 billion $2,585 billion $3,098 billion FCFE = 198 15(1 . 35) + 20 = 208. 5. Value = 208. 25/(. 14 . 03) = 1893. 5. award 10 out of 10 points If a firm has a free cash flow equal to $50 million and that cash flow is pass judgment to grow at 3% forever, what is the total firm value given a WACC of 9. 5%? $679 million $715 million $769 million $803 million Total value = 50/(. 095 . 03) = 769. 23 6. award 10 out of 10 points A firm has a stock price of $54. 75 per share. The firms earnings are $75 million and the firm has 20 million shares outstanding. The firm has an ROE of 15% and a plowback of 65%. What is the firms nab ratio? 1. 50 1. 25 1. 10 1. 00 7. award 10 out of 10 pointsAce Frisbee connection produces a good that is very m ature in their product life cycles. Ace Frisbee Corporation is expected to pay a dividend in year 1 of $3. 00, a dividend in year 2 of $2. 00, and a dividend in year 3 of $1. 00. After year 3, dividends are expected to decline at the rate of 2% per year. An appropriate required fork up for the stock is 8%. Using the multistage DDM, the stock should be worth __________ today. $13. 07 $13. 58 $18. 25 $18. 78 8. award 10 out of 10 points Caribou Gold Mining Corporation is expected to pay a dividend of $4 in the upcoming year. Dividends are expected to decline at the rate of 3% per year.The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of -0. 50. Using the CAPM, the return you should require on the stock is _________. 2% 5% 8% 9% 9. award 10 out of 10 points You are considering acquiring a common share of Sahali Shopping Center Corporation that you would corresponding to hold for one year . You expect to receive both $1. 25 in dividends and $35 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 12% return. 31. 25 $32. 37 $38. 47 $41. 32 10. award 10 out of 10 points Each of two stocks, A and B, are expected to pay a dividend of $7 in the upcoming year. The expected harvesting rate of dividends is 6% for both stocks. You require a return of 10% on stock A and a return of 12% on stock B. Using the constant fruit DDM, the intrinsic value of stock A _________. go out be higher than the intrinsic value of stock B go forth be the same as the intrinsic value of stock B will be less than the intrinsic value of stock B more information is necessary to exercise this question award 11. ward 10 out of 10 points If a firm increases its plowback ratio this will probably result in a(n) _______ P/E ratio. higher lower unchanged unable to get back 12. award 10 out of 10 points If a stock is correctly priced then you know that ____________. the dividend payout ratio is optimal the stocks required return is equal to the growth rate in earnings and dividends the sum of the stocks expected capital gain and dividend yield is equal to the stocks required rate of return the present value of growth opportunities is equal to the value of assets in place