答案和详解如下： 6.The stable-growth free cash flow to equity (FCFE) model is best suited for which of the following types of companies? Companies: A) with patents that will not expire for 20 or more years. B) with significant barriers to entry. C) in high growth industries that will face increasing competitive pressures over time, leading to a gradual decline in growth to a stable level. D) growing at a rate similar or less than the nominal growth rate of the economy. The correct answer was D) Companies growing at a rate similar to or less than the nominal growth rate of the economy are best suited for the Stable Growth FCFE Model. The three-stage FCFE model, or E-Model, is most suited to analyzing firms currently experiencing high growth that will face increasing competitive pressures over time, leading to a gradual decline in growth to a stable level. The two-stage model is best suited to analyzing firms in a high growth phase that will maintain that growth for a specific period, such as firms with patents or firms in an industry with significant barriers to entry. 7.Which of the following types of company is the E Model (a Three-Stage FCFE Model) best suited for? Companies: A) with patents or firms in an industry with significant barriers to entry. B) growing at a rate similar to or less than the nominal growth rate of the economy. C) in high growth industries that will face increasing competitive pressures over time, leading to a gradual decline in growth to a stable level. D) that pay out all of their earnings as dividends. The correct answer was C) The three-stage FCFE model, or E-Model, is most suited to analyzing firms currently experiencing high growth that will face increasing competitive pressures over time, leading to a gradual decline in growth to a stable level. The two-stage model is best suited to analyzing firms in a high growth phase that will maintain that growth for a specific period, such as firms with patents or firms in an industry with significant barriers to entry. Companies growing at a rate similar to or less than the nominal growth rate of the economy are best suited for the Stable Growth FCFE Model. A firm that pays out all of its earnings as dividends will have a growth rate of zero (remember g = RR*ROE) and would not be valued using the three-stage FCFE model. 8.Which of the following statements about the three-stage FCFE model is most accurate? A) There is a transition period where the growth rate is stable. B) There is a transition period where the growth rate increases. C) There is a transition period where the growth rate declines. D) There is a final phase when growth rate starts to decline. The correct answer was C) In the three-stage FCFE model, there is an initial phase of high growth, a transition period where the growth rate declines, and a steady-state period where growth is stable. 9.Using the E model, capital spending is likely to be much larger than depreciation expense ring the: A) transition phase only. B) high-growth phase only. C) stable-growth phase only. D) the high growth and transition phases. The correct answer was B) In high-growth phase, capital spending is likely to be much larger than depreciation. In the transition phase, the difference is likely to narrow. Capital spending and depreciation should be in rough parity in the stable growth phase. 10.In using FCFE models, the assumption of growth should be: A) independent from the assumptions of other variables. B) only consistent with the assumptions of capital spending and depreciation. C) only consistent with the assumptions of risk. D) consistent with assumptions of other variables. The correct answer was D) The assumption of growth should be consistent with assumptions about other variables. Net capital expenditures (capital expenditures minus depreciation) and beta (risk) used to calculate required rate of return should be consistent with assumed growth rate. | 
发表于 2008-5-20 13:46
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