Reading 44: Market-Based Valuation: Price and Enterprise Val return, methods, average, face, 2011

土豆妮

Session 12: Equity Investments: Valuation Models
Reading 44: Market-Based Valuation: Price and Enterprise Value Multiples

LOS f: Discuss methods of normalizing EPS, and calculate normalized EPS.

 

 

The average return on equity (ROE) earnings normalization method relies on:

A) average ROE over the most recent cycle.

B) average earnings per share (EPS) over the most recent cycle.

C) the earnings yield.

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The average return on equity normalization method normalizes EPS as the average ROE over the most recent full cycle multiplied by book value per share.

[此贴子已经被作者于2011-3-21 11:32:39编辑过]

土豆妮

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

A) comparables.

B) historical average earnings per share (EPS).

C) average return on assets.

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

土豆妮

The goal of normalizing earnings is to adjust for:

A) cyclical elements.

B) seasonal elements.

C) non-cash charges.

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The goal of normalizing earnings is to adjust for cyclical elements.