[PDF] Top 20 CFA 2018 Quest bank 01 Equity Valuation Valuation Concepts

... The top down model for valuation would begin with analysis of the overall economy and the expectation of the growth rate in the economy. Further, the impact of the expected growth rate of the economy on the oil ... Lihat dokumen lengkap

... 4. B is correct. Using Equation 6: Equity risk premium = Div. yield on index based on next year aggregated forecasted dividends & aggregate market value + long-term earnings growth rate- current long-term ... Lihat dokumen lengkap

... Di Stefano asked Starshah's Director of Strategic Planning, Keisha Simmons, to make a presentation to Starshah's board at the end of 2004 about the future growth of the firm. The news was sobering. Simmons told the board ... Lihat dokumen lengkap

... highest valuation multiples in the absence of an IPO, 2) specialized firms have the skill to bring their portfolio companies to the next level and sell to either a strategic investor or another PE firm having a ... Lihat dokumen lengkap

... 17. A portfolio manager is required to buy 25,000 shares of Biz Corp. in a month. She fears that the price will rise during the coming month, so she contacts a dealer and enters into an equity forward contract to ... Lihat dokumen lengkap

... 17. Rob Lowe is valuing the equity of Vic Beverages. He estimates FCFE for 2016 by using a constant-growth model. The estimated value for FCFE for 2015 is $5. Lowe uses FCFE growth rate of 5% and required rate of ... Lihat dokumen lengkap

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... 33. A portfolio manager had invested a total amount of $300,000 in stocks and fixed income instruments at the start of the year. Equity investments represented 60% of the portfolio and generated year-end return of ... Lihat dokumen lengkap

... 25. A is correct. If interest rates are lowered, the yields on Bliss’s bonds are likely to decrease and Bond Y (callable) may be called. B is incorrect because if the equity market declines, Bliss’s stock price ... Lihat dokumen lengkap

... The partners have identified specific REIT managers who have consistently outperformed their indices for the public option. They have also contacted potential high creditworthy borrowers in case of private debt. For the ... Lihat dokumen lengkap

... 15. Parma Ltd.'s recent annual earnings were $8 a share and current annual dividend per share is $4.8. Its earnings and dividends are expected to grow by 8%. The company operates in the technology sector therefore has a ... Lihat dokumen lengkap

... and equity risk premiums are used. The risk-free rate, the equity risk premium, the small stock premium, a company-specific risk premium, and an industry risk premium are added together in the build-up ... Lihat dokumen lengkap

... 17. C is correct. Differences in market values of individual companies in the same industry but trading in different countries is a common factor and is unlikely to create difficulty in relative valuations. The ... Lihat dokumen lengkap

... If the guideline public company method is used, a control premium does not need to be estimated.. Under the guideline transactions method, the control premium is already incorporated in [r] ... 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

... An investment is NOT expected to yield abnormal positive returns when its market price is higher than its intrinsic value.. When market prices accurately reflect all information, investo[r] ... Lihat dokumen lengkap

... Creative Gardening is expected to have a return on equity (ROE) of 13% for the next five years and 10% thereafter, indefinitely. Its current book value per share as of the beginning of year 1 (i.e., the end of ... Lihat dokumen lengkap

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... 58. An analyst wishes to determine the intrinsic value of a company that has goodwill and patents comprising more than 40% of total assets. Further, the analyst wants to focus on both the firm’s capacity to pay dividends ... Lihat dokumen lengkap