1.An analyst is valuing a company with a dividend payout ratio of 0.55, a beta of 0.92, and an expected earnings growth rate of 0.07. A regression on comparable companies produces the following equation:

Predicted price to earnings (P/E) = 7.65 + (3.75 × dividend payout) + (15.35 × growth) – (0.70 × beta)

What is the predicted P/E using the above regression?

A)   7.65.

B)   10.14.

C)   9.85.

D)   11.43.

2.An analyst is valuing a company with a dividend payout ratio of 0.35, a beta of 1.45, and an expected earnings growth rate of 0.08. A regression on comparable companies produces the following equation:

Predicted price to earnings (P/E) = 7.65 + (3.75 × dividend payout) + (15.35 × growth) – (0.70 × beta)

What is the predicted P/E using the above regression?

A)   7.65.

B)   9.85.

C)   9.18.

D)   11.21.

3.An analyst is valuing a company with a dividend payout ratio of 0.65, a beta of 0.72, and an expected earnings growth rate of 0.05. A regression on comparable companies produces the following equation:

Predicted price to earnings (P/E) = 7.65 + (3.75 × dividend payout) + (15.35 × growth) – (0.70 × beta)

What is the predicted P/E using the above regression?

A)   7.65.

B)   9.85.

C)   10.35.

D)   11.39.

答案和详解如下：

1.An analyst is valuing a company with a dividend payout ratio of 0.55, a beta of 0.92, and an expected earnings growth rate of 0.07. A regression on comparable companies produces the following equation:

Predicted price to earnings (P/E) = 7.65 + (3.75 × dividend payout) + (15.35 × growth) – (0.70 × beta)

What is the predicted P/E using the above regression?

A)   7.65.

B)   10.14.

C)   9.85.

D)   11.43.

The correct answer was B)

Predicted P/E = 7.65 + (3.75 × 0.55) + (15.35 × 0.07) – (0.70 × 0.92) = 10.14.

2.An analyst is valuing a company with a dividend payout ratio of 0.35, a beta of 1.45, and an expected earnings growth rate of 0.08. A regression on comparable companies produces the following equation:

Predicted price to earnings (P/E) = 7.65 + (3.75 × dividend payout) + (15.35 × growth) – (0.70 × beta)

What is the predicted P/E using the above regression?

A)   7.65.

B)   9.85.

C)   9.18.

D)   11.21.

The correct answer was C)

Predicted P/E = 7.65 + (3.75 × 0.35) + (15.35 × 0.08) – (0.70 × 1.45) = 9.1755.

3.An analyst is valuing a company with a dividend payout ratio of 0.65, a beta of 0.72, and an expected earnings growth rate of 0.05. A regression on comparable companies produces the following equation:

Predicted price to earnings (P/E) = 7.65 + (3.75 × dividend payout) + (15.35 × growth) – (0.70 × beta)

What is the predicted P/E using the above regression?

A)   7.65.

B)   9.85.

C)   10.35.

D)   11.39.

The correct answer was C)

Predicted P/E = 7.65 + (3.75 × 0.65) + (15.35 × 0.05) – (0.70 × 0.72) = 10.35.