Reading 42: Market-Based Valuation: Price and Enterprise Val

Session 12: Equity Investments: Valuation Models
Reading 42: Market-Based Valuation: Price and Enterprise Value Multiples

LOS t: Describe the main types of momentum indicators and their use in valuation.

Which of the following is a common momentum valuation indicator?

A)	Relative strength.

B)	Dividend yield (D/P).

C)	Price to free cash flow to equity (P/FCFE).

Relative strength is generally considered a momentum valuation indicator.

3^#

发表于 2010-4-19 16:15 | 只看该作者

In interpreting the standardized unexpected earnings (SUE) momentum measure, it can be concluded that a given size forecast error is:

A)	scaled by the earnings surprise.

B)	more meaningful the larger the historical size of forecast errors.

C)	more meaningful the smaller the historical size of forecast errors.

A given size forecast error is more (less) meaningful the smaller (larger) the historical size of forecast errors.

2^#

发表于 2010-4-19 16:14 | 只看该作者

Which of the following is NOT a common momentum valuation indicator?

A)	Earnings surprise.

B)	Dividend yield.

C)	Relative strength.

Dividend yield is not generally considered a momentum valuation indicator.