标题: Reading 38: Equity: Concepts and Techniques-LOS b 习题精选 [打印本页]
作者: 土豆妮 时间: 2011-3-17 14:40 标题: [2011]Session 11-Reading 38: Equity: Concepts and Techniques-LOS b 习题精选
Session 11: Equity Valuation: Industry and Company Analysis in a Global Context
Reading 38: Equity: Concepts and Techniques
LOS b: Discuss approaches to equity analysis (ratio analysis and discounted cash flow models, including the franchise value model).
Which of the following is least likely to be characteristic of a firm earning excess risk-adjusted return and its industry?
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A) |
A full flow-through firm. | |
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B) |
A franchise factor equal to zero. | |
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C) |
ROE in excess of the required rate of return. | |
The higher the franchise factor, the higher the firm valuation. A zero franchise factor is not likely to be associated with a firm earning excess returns. Full flow-through and ROE greater than the required rate of return both raise valuation, other things equal.
作者: 土豆妮 时间: 2011-3-17 14:41
If a firm’s return on equity (ROE) is greater than the rate of return demanded by investors (r), which of the following statements is CORRECT? There is:
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A) |
a high franchise P/E value. | |
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B) |
potential franchise value. | |
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C) |
negative franchise value. | |
If ROE is greater than r, then there is some benefit in reinvesting the earnings within the firm, therefore, there is potential franchise value.
作者: 土豆妮 时间: 2011-3-17 14:41
Which of the following variables is least likely to be applicable in analyzing the price-to-earnings (P/E) values for a firm?
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B) |
Rate of return demanded by investors. | |
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The tax rate is not generally applicable in an analysis of P/E values. Presumably, the earnings are already taxed at the firm level. Both remaining variables are important components in the analysis and calculation of P/E values.
作者: 土豆妮 时间: 2011-3-17 14:41
Which of the following statements about the franchise value method is CORRECT?
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A) |
The franchise factor accounts for the required returns from new investments. | |
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B) |
The firm’s tangible price-to-earnings (P/E) value is the sum of the firm’s intrinsic P/E value and franchise P/E value. | |
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C) |
The franchise factor accounts for the present value of the excess returns from new investments. | |
The intrinsic P/E value is the sum of the tangible P/E value and the franchise P/E value. The franchise P/E can be analyzed as two components: a franchise factor that accounts for the required return from new investments, and a growth factor that accounts for the present value of excess returns from new investments.
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