[LEVEL II 模拟试题7] Mock Level II - Question 41-45 模拟试题

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Question 41 - 9969

There are at least four factors that contribute to a firm’s profitability and pricing decisions. All of the following are factors that firms consider when establishing their pricing practices EXCEPT:

A)	product segmentation.
B)	ease of entry into the industry.
C)	degree of industry concentration.
D)	product demographics.

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Question 42 - 10052

Jax, Inc., pays a current dividend of $0.52 and is projected to grow at 12 percent. If the required rate of return is 11 percent, what is the current value based on the Gordon growth model?

A)	$39.47.
B)	unable to determine value using Gordon model.
C)	$53.32.
D)	$58.24.

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Question 43 - 10124

The difference between free cash flow to equity (FCFE) and free cash flow to the firm (FCFF) is:

A)	earnings before interest and taxes (EBIT) less taxes.
B)	after-tax interest and net borrowing.
C)	before-tax interest and net borrowing.
D)	capital expenditures.

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Question 44 - 10335

Good Sports, Inc., (GSI) has a leading price to earnings (P/E) ratio of 12.75 and a 5-year consensus growth rate forecast of 8.50 percent. What is the firm’s P/E to growth (PEG) ratio?

A)	0.67.
B)	150.00.
C)	6.67.
D)	1.50.

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Question 45 - 10317

A method commonly used to normalize earnings is the method of:

A)	average return on assets.
B)	historical average earnings per share (EPS).
C)	comparables.
D)	forecasted fundamentals.

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Question

41 - #9969

Your answer: B was incorrect. The correct answer was D)

product demographics.

The four factors that affect industry pricing practices are product segmentation, degree of industry concentration, ease of industry entry, and price changes in key supply inputs.

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Question

42 - #10052

Your answer: B was correct!

The Gordon growth model cannot be used if the growth rate exceeds the required rate of return.

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Question

43 - #10124

Your answer: B was correct!

FCFE = FCFF ・[interest expense] (1 ・tax rate) + net borrowing.

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Question

44 - #10335

Your answer: B was incorrect. The correct answer was D) 1.50.

The firm痴 PEG is 12.75/8.50 = 1.50.

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Question

45 - #10317

Your answer: B was correct!

A common method in normalizing earnings uses the historical average EPS.