答案和详解如下： 6.Which of the following is a condition for the value of equity obtained from FCFF and FCFE approaches to be same? A) Assumptions of the growth rate should be consistent in both approaches. B) Growth rate used in both approaches should be equal. C) Market value of bonds should be higher than the book value. D) Market value of bonds should be lower than the book value. The correct answer was A) The value of equity from both approaches will be the same when the assumptions of growth rate are consistent in both approaches (does not mean that same growth rate is used for both approaches, but the growth rate in earnings should reflect effect of leverage) and bonds (debt outstanding) are correctly priced. 7.An analyst will get the best estimate of the value of a firm’s equity using FCFF models, when: A) value of equity is calculated by subtracting the book value of debt outstanding from the value of the whole firm. B) cost of equity is used as the discount rate in the FCFF model. C) value of equity is calculated by subtracting the market value of debt outstanding from the value of the whole firm. D) value of equity is calculated by subtracting the market value of debt outstanding from the value of the whole firm and cost of equity is used as the discount rate in the FCFF model. The correct answer was C) The WACC is the appropriate discount rate to employ when using the FCFF models. To estimate the value of equity when using a FCFF model, an analyst should subtract the market value of the debt from the estimated value of the firm. 8.Which one of the following is NOT added to FCFE to calculate FCFF? A) After-tax interest expense. B) Common dividends. C) Principal repayments. D) Preferred dividends. The correct answer was B) FCFF can be calculated by adding cash flows to all claim holders (investors). FCFF = FCFE + [Interest Expense * (1 - tax rate)] + Principal Repayments - New Debt Issues + Preferred Dividends. 9.Free cash flow to the firm (FCFF) is the cash available to: A) bondholders. B) stockholders and preferred stockholders. C) bondholders and preferred stockholders. D) all of the firm's investors. The correct answer was D) FCFF is the cash available to all of the firm’s investors including stockholders, bondholders, and preferred stockholders. 10.All of the following models value a firm’s equity EXCEPT: A) H model. B) Two-stage FCFE model. C) Stable-growth FCFF model. D) Three-stage DDM model. The correct answer was C) The FCFF models, unlike the FCFE or DDM models, value the whole firm rather than just the equity. | 
发表于 2008-5-20 11:36
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