答案和详解如下： 1．The capital asset pricing model can be used to estimate which of the following inputs to the dividend discount model? A) The expected inflation rate. B) The expected dividend yield. C) The expected growth rate in dividends. D) The required return on equity. The correct answer was D) The capital asset pricing model is a rate of return model that can be used to estimate a stock’s required rate of return, given the nominal risk-free rate, the market risk premium, and the stock’s beta: k = Rnominal risk free rate + (beta)(Rmarket - Rnominal risk free rate).
2．The required rate of return on equity used as an input to the dividend discount model is influenced by each of the following factors EXCEPT:
A) the expected inflation rate. B) the economy's real risk-free rate. C) the stock's appropriate risk premium. D) the stock's dividend payout ratio. The correct answer was D) A stock’s required rate of return is equal to the nominal risk-free rate plus a risk premium. The nominal risk-free rate is approximately equal the real risk-free rate plus expected inflation. 3．A company’s growth rate in dividends and earnings can be estimated as the: A) difference between the retention ratio and the return on equity. B) product of the retention ratio and the return on equity. C) product of the return on equity and the dividend payout ratio. D) inverse of the price-earnings ratio. The correct answer was B) Assuming past investments are stable and earnings are calculated to allow for maintenance of past earnings power, then the firm’s expected dividend growth rate (g) can be defined as the firm’s earnings plowback or retention rate (RR) times the return on the equity (ROE) portion of new investments. This growth rate is also called the sustainable growth rate.
4．A stock’s dividend growth rate is a function of each of the following EXCEPT:
A) profit margin. B) dividend payout ratio. C) total asset turnover. D) P/E ratio. The correct answer was D) Assuming past investments are stable and earnings are calculated to allow for maintenance of past earnings power, then the firm’s expected dividend growth rate (g) can be defined as the firm’s earnings plowback or retention rate (RR) times the return on the equity (ROE) portion of new investment. RR is equal to 1 minus the dividend payout ratio, and ROE equals profit margin times total asset turnover times financial leverage. This growth rate is also called the sustainable growth rate.
5.Regarding a standard dividend discount model (DDM) which of the following factors is least likely to affect the required rate of return on the investment?
A) Risk-free rate of return. B) ROA. C) Expected inflation rate. D) Beta. The correct answer was B) The CAPM formula for Ke = Rf + Beta * (Rm - Rf), where Rf is the (nominal) Risk-free rate of return and Rm is the market rate of return. The (nominal)risk-free rate = [(1 + real risk-free rate) * (1 + inflation rate)] - 1.
6.Which of the following does NOT directly affect a company’s required return on equity?
A) Expected market return. B) Risk-free rate of return. C) The company’s beta. D) Return on assets. The correct answer was D) The formula for the required return is ke = risk free rate + beta × (market rate – risk free rate).
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发表于 2008-4-10 17:54
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