2008 CFA Level 1 － Sample 样题(1)－Q42 style, black, class

8586

42、An analyst gathered the following information about a company:

Net profit margin	5.0%
Total asset turnover	2.0
Financial leverage
(Total assets/equity)	2.5
Beta for the company's stock	1.5
Expected rate of return on the market index	10.0%
Risk-free rate of return	5.0%

The analyst expects the information above to accurately reflect the future. If the company wants to achieve a growth rate of at least 15% without changing its capital structure or issuing new equity, the maximum dividend payout ratio for the company would be closest to:

A. 0.0%.

B. 12.5%.

C. 40.0%.

D. 60.0%.

[此贴子已经被作者于2008-11-7 15:35:01编辑过]

8586

Correct answer = C

"Introduction to Security Valuation: Part II," Frank K. Reilly and Keith C. Brown
2008 Modular Level I, Vol. 5, pp. 196-199
Study Session 14-60-e
estimate the implied dividend growth rate, given the components of the required return on equity and incorporating the earnings retention rate and current stock price
The growth rate for the company is the product of the return on equity (ROE) and the retention rate. The retention rate is 1 - the dividend payout ratio. The ROE for the company is (5.0%)(2.0)(2.5) = 25%. The retention rate must be at least 60% to achieve a growth of at least 15% (0.60 x 25% = 15%). If the retention rate is at least 60%, the maximum dividend payout ratio is 40%. 

 

wjy9009

b

Riverview

thanks

刀剑如梦

谢谢哦！

zhangxie83

c

gening

thanks!

isaisaisa

c

oleander

c

clover

c