[PDF] Top 20 CFA 2018 Level 2 Equity Quest bank Market Based Valuation QBank

... multiple based on market price is less than the average industry P/E, hence the company is undervalued based on method of ...P/E based on market price ...P/E based on DCF, ... Lihat dokumen lengkap

... 5. C is correct. When there are no gains from synergy or other factors, share prices are not expected to increase and an acquirer trading at a higher P/E multiple purchases a company at a lower P/E multiple, its combined ... Lihat dokumen lengkap

... Consider the CTV private equity fund with committed capital for $135 million, management fee of 2% and carried interest of 20%. The distribution waterfall is calculated according to the total return method ... Lihat dokumen lengkap

... interbank market: USD/EUR = ...104.66/104.68. Based on this information the most appropriate recommendation regarding the triangular arbitrage trade is to: ... Lihat dokumen lengkap

... 16. B is correct. If decisions are based on accounting income rather than cash flows, then the projects chosen are not in the long-run economic interest of the company. Underestimating or overestimating overhead ... Lihat dokumen lengkap

... 8. B is correct. The pecking order theory, suggests that managers choose methods of financing according to a hierarchy that gives first preference to methods with the least potential information content (internally ... Lihat dokumen lengkap

... 1. B is correct. According to MM, a company dividend policy should have no impact on its cost of capital or on shareholder wealth, hence dividend policy is irrelevant given perfect capital market assumptions, ... Lihat dokumen lengkap

... a CFA candidate, is hired by Trevor Securities as a junior ...report based on her conversation with Lee and the brokerage reports, and gives her “buy” recommendations on Malaysian stocks from the consumer ... Lihat dokumen lengkap

... 16. C is correct. Kantian ethics are based on the philosophy of Immanuel Kant (1724 – 1804), who said that people should be treated as ends and never purely as means to the ends of others. People are not ... Lihat dokumen lengkap

... 33. Chris Rogers forecasted that Android Inc. shall pay its first dividend two years from now worth $1.50. For the year after that, it has been forecasted that a dividend of $2.20 shall be paid. This will grow at a ... Lihat dokumen lengkap

... 3. C is correct. Trader changed her previous decision of investment in AMD, based on James’ suggestion and invested in the AMD stock offering on behalf of her clients despite its high stock price. By investing a ... Lihat dokumen lengkap

... 8. Cannon Co. is a small private leather goods’ manufacturer. An analyst estimates that the beta of similar public companies is 1.1, the risk free rate is 4% and market risk premium is 6%. In addition, the small ... Lihat dokumen lengkap

... 19. A is correct. Since growth is expected to decline to a stable long-term rate abruptly, the two stage DDM is most suitable. H-Model is not applicable because abnormal growth rate in Stage 1 abruptly declines to mature ... Lihat dokumen lengkap

... 8. Northern Airways has a current book value of $15 per share. The company's expected long- term ROE is 15% and its cost of equity is 11%. The company maintains a dividend payout ratio of 70% and has constant ... Lihat dokumen lengkap

... The market value of the company ’s debt outstanding is $2,500 and the value of its cash and equivalents is ...of equity is 8% and its WACC is 5%. The value of equity using FCFE is closest to: ... Lihat dokumen lengkap

... 9. XYZ Ltd. has bonds outstanding that have 10 years remaining to maturity. The coupon is at 10% and the price at which the bonds are trading is 102.5. The YTM on the bonds is 9.6%. Estimated premium for holding the ... Lihat dokumen lengkap

... its market price is higher than its intrinsic value. When market prices accurately reflect all information, investors would NOT be motivated to incur the costs of information ... Lihat dokumen lengkap

... Absolute valuation models or intrinsic value models such as the dividend growth rate model and the free cash flow model value a company independent of peer ...The valuation is based on the present ... Lihat dokumen lengkap

... 3. A CFA Institute candidate enrolled for the Level II program has a popular Facebook page under a pseudonym. He posts exam-style questions to his page every day that has taken the number of likes from 50 ... Lihat dokumen lengkap

... 3. Analyst 1: While running a simulation, if there is a strong correlation across two inputs, we can pick only one of the two inputs. We can pick the input that has a bigger impact on value. Analyst 2: While ... Lihat dokumen lengkap