Equity Valuation【Reading 41】Sample - Equity - 【CFA二级试题精选】 - CFA论坛

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发表于 2012-3-31 15:55 | 只看该作者

Herb McClain tells Cammy Oren that Kline Industries’ expected dividend growth rate is 4.0%, ROE is 14%, and required return on equity (r) is 10%. Based on a justified P/B ratio compared to a P/B ratio (based on market price per share) of 1.55, Kline Industries is most likely:

A)	undervalued.

B)	overvalued.

C)	correctly valued.

Justified P/B = (ROE − g) / (r − g). When the expected dividend growth is 4.0%, the justified P/B = (0.14 − 0.04) / (0.10 − 0.04) = 1.67. This is greater than the P/B (at market) of 1.55.

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112^#

发表于 2012-3-31 15:55 | 只看该作者

An analyst is preparing a presentation on “Interpreting PE ratios” and has the following data:

	Portfolio %	Stock PE
Stock AAA	60%	10
Stock BBB	40%	15

Which of the following is the most appropriate measure for calculating the portfolio P/E?

A)	Geometric mean of the P/E’s.

B)	Arithmetic average of the P/E’s.

C)	Weighted harmonic mean of the P/E’s.

The weighted harmonic mean of the 10 and 15 will give the result closest to the portfolio earnings divided by the portfolio value.

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113^#

发表于 2012-3-31 15:57 | 只看该作者

An analyst is calculating the weighted harmonic mean P/E ratio of a 2-stock portfolio. Stocks AAA and BBB have prices of $12 and $15, respectively, and EPS of $1 and $2, respectively. Which of the following is the weighted harmonic mean P/E of the portfolio closest to?

9.00

9.23

9.75

The weighted harmonic mean is 1/[(12/27)(1/12) + (15/27)(2/15)] = 27/3 = 9.00 The weighted harmonic mean of the individual stocks P/Es is the best measure of the P/E for a portfolio of stocks.

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114^#

发表于 2012-3-31 15:57 | 只看该作者

An analyst is preparing a presentation on “Interpreting PE ratios” and has the following data:

	Portfolio %	Stock PE
Stock AAA	60%	10
Stock BBB	40%	15

Which of the following is closest to the weighted harmonic mean of these two PE ratios?

12.49.

11.98.

11.54.

The weighted harmonic mean of the two PE ratios is a harmonic mean which is weighted by the portfolio weights.
1/[(0.60 × 1/10) + (0.40 × 1/15)] = 11.54