答案和详解如下： 1.If the expected return on the equity market is 10 percent, the risk-free rate is 3 percent, and an asset’s beta is 0.6, what is the appropriate equity risk premium for the asset in applying the Gordon growth model? A) 4.20%. B) 6.40%. C) 7.80%. D) 9.00%. The correct answer was A) The asset’s equity risk premium is equal to it’s beta times the difference between the expected return on the equity market and the risk-free rate. Equity Risk Premium = 0.6 (0.10 – 0.03) = 0.042 or 4.2%. 2.A firm pays a current dividend of $1.00 which is expected to grow at a rate of 5 percent indefinitely. If current value of the firm’s shares is $35.00, what is the required return applicable to the investment based on the Gordon dividend discount model (DDM)? A) 7.86%. B) 6.50%. C) 8.00%. D) 8.25%. The correct answer was C) The Gordon DDM uses the dividend for the period (t + 1) which would be $1.05.
$35 = $1.05 / (required return – 0.05)
Required return = 0.08 or 8.00% 3.Recent surveys of analysts report long-term earnings growth estimates as 5.5 percent and a forecasted dividend yield of 2.0 percent on the market index. At the time of the survey, the 20-year U.S. government bond yielded 4.8 percent. According to the Gordon growth model, what is the equity risk premium? A) 2.7%. B) 0.4%. C) 7.5%. D) 12.3%. The correct answer was A) Equity risk premium = 2.0% + 5.5% – 4.8% = 2.7% 4.Currently the market index stands at 1,190.45. Firms in the index are expected to pay cumulative dividends of 35.71 over the coming year. The consensus 5-year earnings growth forecast for these firms is expected to increase to 6.2 percent up from last year’s forecast of 4.5 percent. The long-term government bond is yielding 5.0 percent. According to the Gordon growth model, what is the equity risk premium? A) 2.5%. B) 9.2%. C) 1.2%. D) 4.2%. The correct answer was D) Equity risk premium = (35.71/1,190.45) + (6.2%) – 5.0% = 4.2% 5.Given an equity risk premium of 3.5 percent, a forecasted dividend yield of 2.5 percent on the market index and a U.S. government bond yield of 4.5 percent, what is the consensus long-term earnings growth estimate? A) 5.5%. B) 1.0%. C) 10.5%. D) 8.0%. The correct answer was A) Equity risk premium = forecasted dividend yield + consensus long term earnings growth rate – long-term government bond yield. Therefore,
Consensus long term earnings growth rate =
Equity risk premium - forecasted dividend yield + long-term government bond yield
Consensus long term earnings growth rate = 3.5% - 2.5% + 4.5% = 5.5% | 
发表于 2008-5-20 10:17
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