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Q11. Which of the following is least likely to characterize the difference between a residual income model and a FCFE model?
A) A residual income model is applicable to a firm that does not have FCF.
B) Terminal value represents a higher proportion of intrinsic value in a residual income model than in a dividend discount model (DDM).
C) Inputs to a residual income model are more easily manipulated by management.
Q12. The residual income of Geremiah Analytics is closest to:
A) $120,000.
B) ?$120,000.
C) $1,080,000.
Q13. Regarding their statements about ROE and residual income, who is correct?
LaMarre Hofstedt
A) Correct Incorrect
B) Correct Correct
C) Incorrect Correct
Q14. Travel Advisors has earnings before interest and taxes (EBIT) of $200 million, interest expense of $83 million, taxes of $46.8 million, and total debt of $125 million. It is also financed with total equity of $850 million, which has a required rate of return of 12%. What is Travel Advisors’ residual income?
A) A loss of $31.8 million.
B) A profit of $70.2 million.
C) A profit of $31.8 million.
Q15. Travel Advisors has earnings before interest and taxes (EBIT) of $200 million, interest expense of $83 million, taxes of $46.8 million, and total debt of $125 million. It is also financed with total equity of $650 million, which has a required rate of return of 12 percent. What is Travel Advisors’ residual income? A:
A) profit of $70.2 million.
B) loss of $70.2 million.
C) loss of $7.8 million.
Q16. Residual income is defined as:
A) operating income plus depreciation and amortization.
B) net income less a charge that measures stockholders' opportunity cost in generating that income.
C) net income less a charge for capital investment. | 
发表于 2009-3-9 17:47
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