投资学英文第7版TestBank答案chap018Word文档格式.docx

投资学英文第7版TestBank答案chap018Word文档格式.docx

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D）Tobin'

sQ

E）Noneoftheabove.

Answer:

DDifficulty:

Easy

Rationale:

Bookvaluepershareisassetsminusliabilitiesdividedbynumberofshares.Liquidationvaluepershareistheamountashareholderwouldreceiveintheeventofbankruptcy.Marketvaluepershareisthemarketpriceofthestock.

2.HighP/Eratiostendtoindicatethatacompanywill_______,ceterisparibus.

A）growquickly

B）growatthesamespeedastheaveragecompany

C）growslowly

D）notgrow

E）noneoftheabove

ADifficulty:

Investorspayforgrowth;

hencethehighP/Eratioforgrowthfirms;

however,theinvestorshouldbesurethatheorsheispayingforexpected,nothistoric,growth.

3._________isequalto（commonshareholders'

equity/commonsharesoutstanding）.

Seerationalefortestbankquestion18.1

4.________areanalystswhouseinformationconcerningcurrentandprospectiveprofitabilityofafirmstoassessthefirm'

sfairmarketvalue.

A）Creditanalysts

B）Fundamentalanalysts

C）Systemsanalysts

D）Technicalanalysts

E）Specialists

BDifficulty:

Fundamentalistsuseallpublicinformationinanattempttovaluestock（whilehopingtoidentifyundervaluedsecurities）.

5.The_______isdefinedasthepresentvalueofallcashproceedstotheinvestorinthestock.

A）dividendpayoutratio

B）intrinsicvalue

C）marketcapitalizationrate

D）plowbackratio

Thecashflowsfromthestockdiscountedattheappropriaterate,basedontheperceivedriskinessofthestock,themarketriskpremiumandtheriskfreerate,determinetheintrinsicvalueofthestock.

6._______istheamountofmoneypercommonsharethatcouldberealizedbybreakingupthefirm,sellingtheassets,repayingthedebt,anddistributingtheremaindertoshareholders.

E）Noneoftheabove

Seeexplanationfortestbankquestion18.1.

7.Since1955,Treasurybondyieldsandearningsyieldsonstockswere_______.

A）identical

B）negativelycorrelated

C）positivelycorrelated

D）uncorrelated

CDifficulty:

Theearningsyieldonstocksequalstheexpectedrealrateofreturnonthestockmarket,whichshouldbeequaltotheyieldtomaturityonTreasurybondsplusariskpremium,whichmaychangeslowlyovertime.TheyieldsareplottedinFigure18.8.

8.Historically,P/Eratioshavetendedtobe_________.

A）higherwheninflationhasbeenhigh

B）lowerwheninflationhasbeenhigh

C）uncorrelatedwithinflationratesbutcorrelatedwithothermacroeconomicvariables

D）uncorrelatedwithanymacroeconomicvariablesincludinginflationrates

P/Eratioshavetendedtobelowerwheninflationhasbeenhigh,reflectingthemarket'

sassessmentthatearningsintheseperiodsareof"

lowerquality"

i.e.,artificiallydistortedbyinflation,andwarrantinglowerP/Eratios.

9.The______isacommontermforthemarketconsensusvalueoftherequiredreturnonastock.

D）plowbackrate

Themarketcapitalizationrate,whichconsistsoftherisk-freerate,thesystematicriskofthestockandthemarketriskpremium,istherateatwhichastock'

scashflowsarediscountedinordertodetermineintrinsicvalue.

10.The_________isthefractionofearningsreinvestedinthefirm.

B）retentionrate

C）plowbackratio

D）AandC

E）BandC

EDifficulty:

Retentionrate,orplowbackratio,representstheearningsreinvestedinthefirm.Theretentionrate,or（1-plowback）=dividendpayout.

11.TheGordonmodel

A）isageneralizationoftheperpetuityformulatocoverthecaseofagrowingperpetuity.

B）isvalidonlywhengislessthank.

C）isvalidonlywhenkislessthang.

D）AandB.

E）AandC.

TheGordonmodelassumesconstantgrowthindefinitely.Mathematically,gmustbelessthank;

otherwise,theintrinsicvalueisundefined