6.UC Inc. is a high-tech company that currently pays a dividend of $2.00 per share. UC’s expected growth rate is 5 percent. The risk-free rate is 3 percent and market return is 9 percent.

What is the beta implied by a market price of $40.38?

A)   1.02.

B)   1.16.

C)   1.20.

D)   2.06.

7．What is the price of the UC stock if beta is 1.12?

A)   $9.72.

B)   $25.99.

C)   $42.37.

D)   $44.49.

8．Assuming a beta of 1.12, if UC is expected to have a growth rate of 10 percent for the first 3 years and 5 percent thereafter, what is the price of UC stock?

A)   $50.87.

B)   $53.81.

C)   $46.89.

D)   $47.62

9．Assuming a beta of 1.12, if UC’s growth rate is 10 percent initially and is expected to decline steadily to a stable rate of 5 percent over the next three years, what is the price of UC stock?

A)   $47.82.

B)   $46.61.

C)   $44.49.

D)   $47.67.

10．An analyst for a small European investment bank is interested in valuing stocks by calculating the present value of its future dividends. He has compiled the following financial data for Ski, Inc.:

Note: Shareholders of Ski, Inc., require a 20 percent return on their investment in the high growth stage compared to 12 percent in the stable growth stage. The dividend payout ratio of Ski, Inc., is expected to be 40 percent for the next three years. After year 3, the dividend payout ratio is expected to increase to 80 percent and the expected earnings growth will be 2 percent.

Using the information contained in the table, what is the value of Ski, Inc.'s, stock?

A)   $71.38.

B)   $39.50.

C)   $43.04.

D)   $60.75.

答案和详解如下：

6.UC Inc. is a high-tech company that currently pays a dividend of $2.00 per share. UC’s expected growth rate is 5 percent. The risk-free rate is 3 percent and market return is 9 percent.

What is the beta implied by a market price of $40.38?

A)   1.02.

B)   1.16.

C)   1.20.

D)   2.06.

The correct answer was C)

40.38 = 2.10 / (r - 0.05)

r = 2.10 / 40.38 + 0.05 = 0.1020

From CAPM:

r = 0.03 + b(0.09 - 0.03)

0.1020 = 0.03 + 0.06b

b = 1.20

7．What is the price of the UC stock if beta is 1.12?

A)   $9.72.

B)   $25.99.

C)   $42.37.

D)   $44.49.

The correct answer was D)

From CAPM

r = 0.03 + b(0.09 - 0.03)

r = 0.03 + 1.12(0.06)

r = 0.0972

V₀= D₁ / (r - g)

      = 2.00(1 + 0.05) / (0.0972 - 0.05)

      = 2.10 / 0.0472 = $44.49

8．Assuming a beta of 1.12, if UC is expected to have a growth rate of 10 percent for the first 3 years and 5 percent thereafter, what is the price of UC stock?

A)   $50.87.

B)   $53.81.

C)   $46.89.

D)   $47.62

The correct answer was A)    

D₁ = 2(1.10) = 2.20

D₂ = 2.20(1.10) = 2.42

D₃ = 2.42(1.10) = 2.662

D₄ = 2.662(1.05) = 2.795

V₃ = D₄ / (r - g)

      = (2.795)/(0.0972 - 0.05)

      = 59.22 

V₀ = (2.20)/(1.0972) + (2.42)/(1.0972)² + (2.662 + 59.22)/(1.0972)³

      = $50.87

9．Assuming a beta of 1.12, if UC’s growth rate is 10 percent initially and is expected to decline steadily to a stable rate of 5 percent over the next three years, what is the price of UC stock?

A)   $47.82.

B)   $46.61.

C)   $44.49.

D)   $47.67.

The correct answer was D)

Given: D₀ = 2.00; g_L = 0.05; g_S = 0.10; H = 3/2 = 1.50; and r = 0.0972

V₀ = {[D₀(1+g_L)] + [D₀ x H x (g_S - g_L)]} / (r-g_L)

V₀ = {[2(1.05)] + 2(1.50)(0.10 - 0.05)]} / (0.0972 - 0.05)

     = 2.25 / 0.0472 = $47.67

10．An analyst for a small European investment bank is interested in valuing stocks by calculating the present value of its future dividends. He has compiled the following financial data for Ski, Inc.:

	Earnings per Share (EPS)
Year 0	$4.00
Year 1	$6.00
Year 2	$9.00
Year 3	$13.50

Note: Shareholders of Ski, Inc., require a 20 percent return on their investment in the high growth stage compared to 12 percent in the stable growth stage. The dividend payout ratio of Ski, Inc., is expected to be 40 percent for the next three years. After year 3, the dividend payout ratio is expected to increase to 80 percent and the expected earnings growth will be 2 percent.

Using the information contained in the table, what is the value of Ski, Inc.'s, stock?

A)   $71.38.

B)   $39.50.

C)   $43.04.

D)   $60.75.

The correct answer was A)

The dividends in the next four years are:

year 1, 6 x 0.4 = 2.4
year 2, 9 x 0.4 = 3.6
year 3, 13.5 x 0.4 = 5.4
year 4 (13.5 x 1.02) x 0.8 = 11.016

The terminal value of the firm (in year 3) is 11.016/(0.12 - 0.02) = 110.16. Value per share = 2.4/(1.2)¹ + 3.6/(1.2)²+ 5.4/(1.2)³ + 110.16/(1.2)³ = $71.38.