答案和详解如下： 6.An analyst gathered the following information about Weston Chemical’s stock:
Estimated sales per share = $12.19
Earnings before interest, taxes, depreciation, and amortization (EBITDA) = 73%
Interest expense per share = $2.07
Depreciation expense per share = $6.21
The tax rate = 35% Weston’s estimated Earnings per Share (EPS) is closest to? A) $0.40. B) $2.54. C) $3.11. D) $5.78. The correct answer was A) Estimate earnings per share (EPS) as: [(sales per share)(EBITDA %) – depreciation per share – interest per share][1 – tax rate] = [($12.19)(0.73) – $6.21 – $2.07][1 – 0.35] = $0.4022 = $0.40. 7.All else equal, a firm will have a higher Price-to-Earnings (P/E) multiple if: A) retention ratio is higher. B) risk-free rate is higher. C) return on equity (ROE) is lower. D) the stock’s beta is lower. The correct answer was D) To increase P/E ratio, lower the retention ratio, lower k and or increase g. A lower beta would lead to a lower stock risk premium and a lower k.
8.An analyst gathered the following data for the Parker Corp. for the year ended December 31, 2005:
EPS2005 = $1.75
Dividends2005 = $1.40
Beta Parker = 1.17
Long-term bond rate = 6.75%
Rate of return S& 500 = 12.00% The firm has changed its dividend policy and now plans to pay out 60% of its earnings as dividends in the future. If the long-term growth rate in earnings and dividends is expected to be 5%, the appropriate price to earnings (P/E) ratio for Parker will be: A) 7.98. B) 9.14. C) 7.60. D) 13.97. The correct answer was C) P/E Ratio = 0.60/(.1289 - .0500) = 7.60. Required rate of return on equity will be 12.89 percent = 6.75% + 1.17(12.00% - 6.75).
9.An analyst gathered the following data for the Parker Corp. for the year ended December 31, 2005:
EPS2005 = $ 1.75
Dividends2005 = $ 1.40
Beta Parker = 1.17
Long-term bond rate = 6.75%
Rate of return S&500 = 12.00% The firm is expected to continue their dividend policy in future. If the long-term growth rate in earnings and dividends is expected to be 6%, the appropriate P/E ratio for Parker Corp. will be: A) 12.31. B) 11.61. C) 20.32. D) 21.54. The correct answer was B) The appropriate P/E ratio for Parker will be 11.61. P/E ratio = .80/(.1289 - .0600) = 11.61 Where r = required rate of return on equity, gn = growth rate in dividends (forever). The required rate of return on equity for Parker will be 12.89% = 6.75% + 1.17(12.00% - 6.75%) and the firm pays 80% (1.40/1.75) of its earnings as dividends. 10.Use the following data to analyze a stock's price earnings ratio (P/E ratio):
The stock's beta is 1.2.
The dividend payout ratio is 60%.
The stock's expected growth rate is 7%.
The risk free rate is 6% and the expected rate of return on the market is 13%. Using the dividend discount model, the expected P/E ratio of the stock is closest to: A) 5.4. B) 10.0. C) 12.0. D) 8.1. The correct answer was D) k = ER = Rf + Beta(RM - Rf) = 0.06 + (1.2)(0.13 - 0.06) = 0.144 Dividend payout ratio = 0.60 P/E = div payout/(k - g) = 0.6/(0.144 - 0.07) = 8.1
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发表于 2008-4-10 16:35
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