权益证券投资：行业与公司分析及答案解析.doc

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1、权益证券投资：行业与公司分析及答案解析(总分：99.00，做题时间：90 分钟)一、单项选择题(总题数：99，分数：99.00)1.An analyst gathered the following information about a companys common stock:The value of a share of the companys common stock is closest to:A. . B. . C. （分数：1.00）A.B.C.2.An analyst gathered the following information about four common

2、stock that all have the same dividend payout ratio:Stock Required Rate of Return Dividend Growth Rate1 16.4% 7.1%2 14.1% 9.2%3 15.3% 4.4%4 19.1% 8.0%The lowest earnings multiplier (price earnings ratio) would most likely be associated with stock:A. 2. B. 3. C. 4.（分数：1.00）A.B.C.3.An analyst gathered

3、the following information about a common stock:Annual dividend per share $2.10Risk-free rate of return 7%Risk premium for the stock 45If the stocks annual dividend is expected to remain at $2.10, the value of the stock is closest to :A. $19.09. B. $20.00. C. $32.40.（分数：1.00）A.B.C.4.An analyst gather

4、ed the following information about a company:Net profit margin 4%Shareholders equity $1000000Dividend payout ratio 33%Total assets $2500000Net income $180000The companys potential (sustainable) growth rate is closest to:A. 2.6%. B. 7.0%. C. 12.0%.（分数：1.00）A.B.C.5.All else equal, will a decrease in t

5、he expected rate of inflation result in a decrease in the:Real risk-free of return Nominal risk-free rate of returnA. Yes NoB. Yes YesC. No YesA. B. C. （分数：1.00）A.B.C.6.An analyst gathered the following annual data for SMG Corporation on 2004:Net profit margin 5%Total asset turnover 2.0%Total assets

6、 to equity 2.5%Net income $25000000Dividends paid on common stock $10000000The SMG Corporations estimated dividend growth rate is closest to:A. 10.0%. B. 15.0%. C. 20.0%.（分数：1.00）A.B.C.7.Assuming that the risk-free rate is 5 percent, the expected return on the market is 10 percent, and the stocks be

7、ta is 0.5, what is the value of a stock that paid a $ 0. 30 dividend last year, if dividends are expected to grow at a rate of 6 percent forever?A. $15.00. B. $16.63. C. $21.20.（分数：1.00）A.B.C.8.An analyst has calculated the following ratios for a firm:Sales/Total Assets: 2.8Net Profit Margin (%): 4R

8、eturn on Total Assets (%): 11.2Total Asset/Equity: 1.6The return on equity for this firm would be closest to:A. 4.48%. B. 6.40%. C. 17.92%.（分数：1.00）A.B.C.9.Study the following information about a stock, calculate the price earning ratio:Required rate of return: 15%Constant growth rate: 8%A return on

9、 equity: 12%The earning retention ratio: 20%A. 3.8. B. 4.7. C. 5.6.（分数：1.00）A.B.C.10.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

10、be $40.A. 10%. B. 20%. C. 30%.（分数：1.00）A.B.C.11.An analyst gathered the following information about a company:The stock is currently selling for per share. Which of the following best characterizes the:Intrinsic value of the stock type of stockA. CyclicalB. SpeculativeC. （分数：1.00）A.B.C.12.The prefer

11、red stock of the Delco Investments Company has a par value of $150 and a dividend of $11.50. A shareholders required return on this stock is 14%. What is the maximum price he would pay?A. $82.14. B. $150.00. C. $54.76.（分数：1.00）A.B.C.13.Which of the following statements concerning security valuation

12、is FALSE?A. An investor may determine the required rate of return for the dividend discount model (DDM) by adding a risk premium to the nominal risk-free rate.B. In the dividend discount model (DDM), the value of the firm is the present value of all future dividends.C. An investor can estimate the g

13、rowth rate for the dividend discount model (DDM) by multiplying the firms return on equity (ROE) by the firms dividend payout ratio.（分数：1.00）A.B.C.14.The following data pertains to an investors stock:The stock will pay no dividends for two years.The dividend three years from now is expected to be $1

14、.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?A. $6.24. B. $7.31. C. $8.26.（分数：1.00）A.B.C.15.Billie Blake is interested in a stock that has an expe

15、cted dividend one year from today of $1.50, i. e. , D1=$1.50, D2=$1.75 and D3=$2.05. She expects to sell the stock for $47.50 at the end of year 3. What is Billie willing to pay one year from today if investors require a 12 percent return on the stock.A. $38.01. B. $41.06. C. $52.30.（分数：1.00）A.B.C.1

16、6.Using the one-year holding period and multiple-year holding period dividend discount model (DDM), calculate the change in value of the stock of Monster Burger Place under the following scenarios. First, assume that an investor holds the stock for only one year. Second, assume that the investor int

17、ends to hold the stock for two years. Information on the stock is as follows:Last years dividend was $2.50 per share.Dividends are projected to grow at a rate of 10.0% for each of the next two years.Estimated stock price at the end of year 1 is $25 and at the end of year 2 is $30.Nominal risk-free r

18、ate is 4.5%.The required market return is 10.0%.Beta is estimated at 1.0.The value of the stock if held for one year and the value if held for two years are:Year one Year twoA. $25.22 $35.25B. $27.50 $35.25C. $25.22 $29.80A. B. C. （分数：1.00）A.B.C.17.Which of the following statements regarding a count

19、ry risk premium is TRUE?A. Country risk arises from expected economic and political events.B. Firms in different countries assume significantly different financial risk.C. Exchange rate risk is relatively small and can be ignored.（分数：1.00）A.B.C.18.The risk-free rate is 5 percent, the market rate is

20、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:A. increase to 15. B. decrease to 8.5. C. increase to 10.5.（分数：1.00）A.B.C.19.Which of the following statements concerning security valuation is FALSE

21、?A. Determining the value of a company with supernormal growth requires finding the present value of the dividends during the supernormal growth and adding that to the present value of the stock computed for the period of normal growth.B. The top-down valuation approach requires an assessment of ind

22、ustry influences on the companys value first, then stock-specific influences.C. A firm with a 20% return on equity (ROE) and a dividend payout ratio of 30% will have a sustainable growth rate of 14%.（分数：1.00）A.B.C.20.An analyst gathered the following information about a common stock:Annual dividend

23、per share $2.10Risk free rate 7%Risk premium for this stock 4%If the annual dividend is expected to remain at $2.10, the value of the stock is closest to:A. $19.09. B. $30.00. C. $52.50.（分数：1.00）A.B.C.21.Assume that the expected dividend growth rate (g) for a firm decreased from 5% to zero. Further,

24、 assume that the firms cost of equity (k) and dividend payout ratio will maintain their historic levels. The firms P/E ratio will most likely:A. become undefined. B. increase. C. decrease.（分数：1.00）A.B.C.22.The top-down approach of security analysis includes:A. industry analysis.B. All of these choic

25、es are correct.C. economic analysis.（分数：1.00）A.B.C.23.Which of the following would be assessed first in a top-down valuation approach?A. Fiscal policy.B. Industry return on equity (ROE).C. Company return on equity (ROE).（分数：1.00）A.B.C.24.Assume a companys ROE is 14% and the required return on equity

26、 is 13%. All else remaining equal, if there is a decrease in a firms retention rate, a stocks value as estimated by the constant growth dividend discount model (DDM) will most likely:A. increase. B. decrease. C. not change.（分数：1.00）A.B.C.25.Deciding how to allocate investment funds, first among coun

27、tries, and then within countries to various asset classes, is the objective of which step of the top-down valuation approach?A. Analysis of industry influences.B. Company analysis.C. Analysis of general economic influences.（分数：1.00）A.B.C.26.In the top-down approach to valuation, industry analysis sh

28、ould be conducted before company analysis because:A. most valuation models recommend the use of industry-wide average required returns, rather than individual returns.B. the goal of the top-down approach is to identify those companies in non-cyclical industries with the lowest P/E ratios.C. an indus

29、trys prospects within the global business environment are a major determinant of how well individual firms in the industry perform.（分数：1.00）A.B.C.27.Study the following data, calculate the return on equity for 2007 and 2008.2007 2008Pre-interest profit margin (EBIT/S)0.3 0.15Asset turnover (S/A) 2 2

30、Leverage multiplier (A/E) 2 2Tax retention rate (1-t) 0.8 0.8Interest expense ratio (I/A) 0.06 0.062007 2008A. 0.864 0.384B. 0.673 0.271C. 0.384 0.864A. B. C. （分数：1.00）A.B.C.28.Which of the following would NOT be a reason for market, industry, and company analysis?A. Firms within a given industry pe

31、rform differently.B. The market is generally a very important component of security returns.C. Single industries perform consistently over time.（分数：1.00）A.B.C.29.Which of the following statements concerning security valuation is FALSE?A. The liquidity risk of countries refers to the size and activit

32、y of the countrys capital markets.B. ROA times one minus the dividend payout ratio is the firms sustainable growth rate.C. If the firms payout ratio is 40% , has a required return of 12% , and a dividend growth rate of 7%, the firms price to earnings (P/E) ratio should be 8.（分数：1.00）A.B.C.30.A stock

33、, which currently does not pay a dividend, is expected to pay its first dividend of $1.00 in five years (D5=$1.00). Thereafter, the dividend is expected to grow at an annual rate of 25 percent for the next three years and then grow at a constant rate of 5 percent per year thereafter.The required rat

34、e of return is 10. 3 percent. What is the value of the stock today?A. $20.65. B. $20.95. C. $22.72.（分数：1.00）A.B.C.31.A firm is expected to have four years of growth with a retention ratio of 100 percent. Afterwards the firms dividends are expected to grow 4 percent annually, and the dividend payout

35、ratio will be set at 50 percent. If earnings per share (EPS)=$2.4 in year 5 and the required return on equity is 10 percent, what is the stocks value today?A. $20.00. B. $30.00. C. $13.66.（分数：1.00）A.B.C.32.A firm has an expected dividend payout ratio of 48 percent and an expected future growth rate

36、of 8 percent. What should the firms price to earnings ratio (P/E) be if the required rate of return on stocks of this type is 14 percent and what is the retention ratio of the firm?P/E ratio Retention ratioA. 6.5 48%B. 8.0 52%C. 8.0 48%A. B. C. （分数：1.00）A.B.C.33.Baker Computer earned $6.00 per share

37、 last year, has a 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?A. $173.90.B. Need growth rate to complete calculation.C. $74.93.（

38、分数：1.00）A.B.C.34.A company reported its latest annual report as following:Net income = $1000000Total equity = $5000000Total assets = $10000000Dividend payout ratio =40%Based on the sustainable growth model, the most likely forecast of the companys future earnings growth rate is:A. 12%. B. 8%. C. 4%.

39、（分数：1.00）A.B.C.35.Which of the following is NOT an assumption of the constant growth dividend discount model (DDM)?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.（分数：1.00）A.B.C.36.Which of the following statement

40、s about the constant growth dividend discount model (DDM) in its application to investment analysis is FALSE? The model:A. is best applied to young, rapidly growing firms.B. cant be applied when g K.C. cant handle firms with variable dividend growth.（分数：1.00）A.B.C.37.Use the following information an

41、d the dividend discount model to find the value of GoFlower, Inc. s, common stock?Last years dividend was $ 3.10 per share.The growth rate in dividends is estimated to be 10 percent forever.The return on the market is expected to be 12 percent.The risk-free rate is 4 percent.Go Flowers beta is 1.1.A

42、. $121.79. B. $34.95. C. $26.64.（分数：1.00）A.B.C.38.An analyst gathered the following information about a company:Net profit margin 5.0%Total asset turnover 2.0Total assets/equity 2.5Beta for the companys stock 1.5Expected rate of return on the market index 10.0%Risk-free rate of return 5.0%The analys

43、t expects the information above to accurately reflect the future. If the 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:A. 0.0%. B. 12.5%. C. 40.0%.（分数：1.00）A.B

44、.C.39.Given the following estimated financial results, value the stock of Fish Chips, Inc. , using the infinite period dividend discount model (DDM).Sales of $1000000Earnings of $150000Total assets of $800000Equity of $400000Dividend payout ratio of 60.0%Average shares outstanding of 75000Real risk

45、free interest rate of 4.0%Expected inflation rate of 3.0%Expected market return of 13.0%Stock Beta at 2.1The per share value of Fish Chips stock is approximately: (Note: Carry calculations out to at least 3 decimal places. )A. $17.91. B. $26.86. C. -$26.39.（分数：1.00）A.B.C.40.Which of the following is

46、 NOT a risk factor for a countrys risk premium?A. Business risk. B. Financial risk. C. Technology risk.（分数：1.00）A.B.C.41.Which of the following statements concerning security valuation is least accurate?A. A stock with a dividend last year of $ 3.25 per share, an expected dividend growth rate of 3.5

47、%, and a required return of 12.5% is estimated to be worth $36.11.B. A stock to be held for two years with a year-end dividend of $2.20 per share, an estimatedvalue of $20.00 at the end of two years, and a required return of 15% is estimated to be worth $18.70 currently.C. A preferred stock with a d

48、ividend of $3.00 per share and a required return of 11.5% is estimated to be worth $ 26.09 currently.（分数：1.00）A.B.C.42.By bee is expected to have a temporary supernormal growth period and then level off to a “normal,“ sustainable growth rate forever. The supernormal growth is expected to be 25 perce

49、nt for 2 years, 20 percent for one year and then level off to a normal growth rate of 8 percent forever. The market requires a 14 percent return on the company and the company last paid a $2.00 dividend. What would the market be willing to pay for the stock today?A. $52.68. B. $47.09. C. $76.88.（分数：1.00）A.B.C.43.Which of the following statements concerning security valuation is FALSE?A. Accounting methods may differ substantially between countries.B. To value any security, you need to know the projected cash flows, their timing, and