[CFA level 1模拟真题]Version 4 Questions－Q42 level

cfaedu

Q42. An analyst gathered the following information for a U.S. company whose common stock is currently priced at $40 per share:

	2000	2001	2002	2003	2004
Earnings per share ($)	1.16	0.62	1.28	1.60	(1.30)
Book value per share($)	8.48	8.92	16.04	19.28	16.30
Return on equity	14%.7%	7%	8%	8%

Because of the severe cyclical contraction that occurred in 2004 for a major segment of the company's operations, the analyst has decided to normalize earnings using the 2000-2003 period. If the analyst also decides to account for changes in the company's size over time, the most appropriate estimate of the company’s 2004 price/earnings (P/E) ratio based on normalized earnings is:

A.22.5

B.26.5

C.34.3

D.59.5

cfaedu

答案和详解如下：

Q42   B   Study Session 14-64-b

Using average ROE provides a better estimate of P/E when a company's size has changed. The average ROE is 9.25; an estimate of normal. earnings per share can be derived by multiplying average ROE by ending book value per share:

0.0925*16.30 per share-$1.51 normal earnings per share.

LEEFEI571

不知

水模样

[em09]

jungle1009

see[em01]

denker5781

?

wangxuepin

?

47dx

sese

vivian1022

kk

fantasy_ln

see