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LOS f: Discuss the fundamental factors that influence each price multiple and dividend yield.
Q1. An increase in which of the following variables will least likley result in a corresponding increase in the price-to-book valuePBV ratio for a high-growth firm?
A) Payout ratios.
B) Required rate of return.
C) Growth rates in earnings.
Q2. An increase in growth will cause a price-to-earnings (P/E) multiple to:
A) increase.
B) there is insufficient information to tell.
C) decrease.
Q3. An increase in financial leverage will cause a price-to-earnings (P/E) multiple to:
A) decrease.
B) increase.
C) there is insufficient information to tell.
Q4. An increase in financial leverage, assuming no change in the growth rate, will generally cause a price to cash flow (P/CF) ratio to:
A) decrease.
B) there is insufficient information to tell.
C) increase.
Q5. An increase in return on equity (ROE) will cause a price-to-book (P/B) multiple to:
A) increase.
B) decrease.
C) there is insufficient information to tell.
Q6. All other variables held constant, the price-to-book value (PBV) ratio will decrease with a decrease in:
A) expected growth rate.
B) retention ratio.
C) required rate of return.
Q7. A decrease in the earnings retention rate will cause a price-to-sales (P/S) multiple to:
A) decrease.
B) remain the same.
C) increase.
Q8. An increase in growth will cause a price to cash flow multiple to:
A) decrease.
B) there is insufficient information to tell.
C) increase.
Q9. The net impact of an increase in payout ratio on price-to-book value (PBV) ratio cannot be determined because it might also:
A) decrease the market value of the firm.
B) decrease required rate of return.
C) decrease expected growth.
Q10. The price-to-book value (PBV) ratio for a high-growth firm will:
A) increase as the growth rate in either the high-growth or stable-growth period increases.
B) increase as the growth rate in either the high-growth or stable-growth period decreases.
C) increase as the growth rate in the high-growth period increases and decrease as the growth rate in the stable-growth period increases.
Q11. An increase in return on equity (ROE) will cause a price-to-earnings (P/E) multiple to:
A) increase.
B) there is insufficient information to tell.
C) decrease.
Q12. An increase in profit margin will cause a price-to-sales (P/S) multiple to increase if:
A) the required rate of return increases.
B) the growth rate in sales does not decrease proportionately.
C) there is insufficient information to tell. | 
发表于 2009-3-9 16:59
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