答案和详解如下: 1.The present value of Raver Industries’ projected residual income (RI) for the next five years is £60 per share. Beyond that time horizon, a key analyst projects that the firm will sustain a RI of £11 per share, which is the RI for year 5. Given a cost of equity of 12 percent, what is the terminal value of the stock as of year 5? A) £500.00. B) £560.00. C) £91.67. D) £19.96. The correct answer was C) The stock’s terminal value as of year 5 is: TV = 11.00/0.12 = 91.67 2.The present value of GB Industries’ projected residual income (RI) for the next five years is 70 per share. Beyond that time horizon, a key analyst projects that the firm will sustain a RI of 15 per share, which is the RI for year 5. Given a cost of equity of 12 percent, what is the terminal value of the stock as of year 5? A) £125.00. B) £500.00. C) £560.00. D) £19.96. The correct answer was A) The stock’s terminal value as of year 5 is: TV = 15.00/0.12 = 125.00 3.The present value of Forman Electronics’ projected residual income (RI) for the next five years is 80 per share. Beyond that time horizon a key analyst projects that the firm will sustain a RI of 17 per share, which is the RI for year 5. Given a cost of equity of 13 percent, what is the terminal value of the stock as of year 5? A) £500.00. B) £560.00. C) £19.96. D) £130.77. The correct answer was D) The stock’s terminal value as of year 5 is: TV = 17.00/0.13 = 130.77 |