81、Chenchell's India Trading Co. (CITC), an importer-exporter of specialty goods and garments, has operations in Asia, Europe, and North America. Marc Twinsing, CFA, a balanced fund manager, is considering adding CITC's stock to his portfolio and he has compiled the following information:
| CITC | Industry Average | Weighted average cost of capital (WACC) | 14% | 12% | Return on Assets (ROA) | 20% | 15% | Dividend Yield | 0% | 1.2% | Consensus estimate of stock’s value | $53 | N/A | Current price of CITC’s stock | $50 | N/A |
Based on his analysis Twinsing's most likely conclusions about the company and its stock, respectively, would be: | that CITC company is a: | that CITC’s stock is a: | A. | growth company | growth stock | B. | growth company | speculative stock | C. | speculative company | growth stock | D. | speculative company | speculative stock |
Select exactly 1 answer(s) from the following:
A. AnswerA. B. AnswerB. C. AnswerC. D. AnswerD.
82、Which of the following is the least accurate rationale to justify the use of price-to-book value (P/BV) ratio as a measure of relative valuation of companies or common stocks? Select exactly 1 answer(s) from the following:
A. P/BV is helpful in valuing companies experiencing negative earnings per share. B. P/BV is a useful measure of value for firms that are not expected to continue as a going concern. C. P/BV correctly reflects a company's value as the book value is based on the historical purchase costs of assets. D. P/BV is particularly appropriate to value companies primarily composed of liquid assets, for example, those in the financial services industry.
83、Metiu Metev, an analyst with Sofia Equity Researchers, has gathered the following information about Balkan Steel Mills (BSM): Current year’s operating free cash flow | BGN 5 million | Cost of equity capital | 15% | Weighted average cost of capital | 12.4% | Estimated long-term growth rate | 6% |
Given this information, Metev's best estimate of BSM's intrinsic value (in BGN millions) would be closest to: Select exactly 1 answer(s) from the following:
A. 55.56 million. B. 58.89 million. C. 78.13 million. D. 82.81 million.
84、Geo Telecommunications Inc. is a fast growing company with a double-digit growth rate that is expected to continue for three more years. In his pursuit of valuing the company's stock, Dimiter Nenkov, a free-lance equity analyst, has compiled the following data about the company: Current year’s free cash flow to equity |
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发表于 2008-11-6 14:34
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