企业融资第十章普通股估值businessfinance.docx

企业融资第十章普通股估值businessfinance.docx

《企业融资第十章普通股估值businessfinance.docx》由会员分享，可在线阅读，更多相关《企业融资第十章普通股估值businessfinance.docx（19页珍藏版）》请在冰豆网上搜索。

企业融资第十章普通股估值businessfinance

Chapter10

COMMONSTOCKVALUATION

MultipleChoiceQuestions

Overview

1.Allofthefollowingarerelativevaluationtechniquesexcept:

a.P/Eratio.

b.Price/bookvalueratio

c.Price/salesratio

d.Price/dividendratio

（d,moderate）

DiscountedCashFlowTechniques

2.Theestimatedvalueofcommonstockisthe:

a.presentvalueofallexpectedcashflows.

b.presentvalueofallcapitalgains.

c.futurevalueofalldividendpayments.

d.presentvalueofalldividendpayments.

（a,moderate）

3.Discountedcashflowtechniquesusedinvaluingcommonstockarebasedon:

a.futurevalueanalysis.

b.presentvalueanalysis.

c.theCAPM.

d.theAPT.

（b,easy）

TheDividendDiscountModel

4.Allofthefollowingareinterchangeabletermsexceptfor:

a.discountrate

b.couponrate

c.requiredrateofreturn

d.capitalizationrate

（b,moderate）

TheDividendDiscountModel

5.Whichofthefollowingisaproblemusingthedividenddiscountmodeltovaluecommonstock?

a.Themodeldoesnotaccountfortheriskofthestock.

b.Themodeldoesnotconsiderthepresentvalueofthedividends.

c.Themodeldoesnotconsiderthatdividendsmaynotbepaid

d.Themodeldoesnotaccountforsmalldividends.

（c,moderate）

6.Whichofthefollowingisnotoneofthedividendgrowthratemodels?

a.theinfinitegrowthmodel

b.thezerogrowthmodel

c.theconstantgrowthmodel

d.themultiplegrowthmodel

（a,moderate）

7.Theconstantgrowthdividendmodelusesthe:

a.historicalgrowthrateindividends.

b.historicalgrowthrateinearnings.

c.estimatedgrowthrateindividends.

d.estimatedgrowthrateinearnings.

（c,moderate）

8.Thezero-growthdividendmodel:

a.givesthehighestvalueforacommonstock.

b.isthemostaccuratemodeltouse.

c.isequivalenttothevaluationmodelforpreferredstock.

d.assumesthehighestrequiredreturnpossible.

（c,easy）

9.Thedividendmodelthatismostappropriateforayoungcompanythatpayssmalldividendsnowbutisexpectedtoincreasedividendsinafewyearsisthe:

a.zero-growthmodel.

b.constantgrowthmodel.

c.expansiongrowthmodel.

d.multiplegrowthmodel.

（d,moderate）

10.Underthemultiplegrowthmodel,atleast------differentgrowthratesareused.

a.two

b.three

c.four

d.five

（a,easy）

11.TheconstantgrowthratemodeloftheDDMimpliesthat:

a.earningsarenotrelevanttostockprices.

b.dividendsremainconstantfromnowtoinfinity.

c.thestockpricegrowsatthesamerateasdividends.

d.alloftheaboveareimpliedbythemodel

（c,difficult）

12.Whichofthefollowingisnotoneofthereasonstwoinvestorsbothusingtheconstant-growthversionoftheDDMonthesamestockmightarriveatdifferentestimatesofthestock'svalue?

a.Theyuseddifferentexpectedreturns.

b.Theyuseddifferentgrowthratesofdividends.

c.Theyuseddifferentrequiredreturns.

d.Alloftheabovearepossiblereasonstheymightarriveatdifferentvalues.

（a,moderate）

13.Whatistheestimatedvalueofastockwitharequiredrateofreturnof15percent,aprojectedconstantgrowthrateofdividendsof10percentandexpecteddividendof$2.00

.

a.$4Solution:

P0=D1/（k–g）

b.$40=2/（.15-.10）

c.$44=$40

d.$20

（b,moderate）

14.XYZCompanyhasexpectedearningsof$3.00fornextyearandusuallyretains40percentforfuturegrowth.Itsdividendsareexpectedtogrowatarateof10percentindefinitely.Ifaninvestorhasarequiredrateofreturnof16percent,whatpricewouldhebewillingtopayforXYZstock?

a.$12.50Solution:

Dividends=$3（1-.4）

b.$25.00=$1.80

c.$30.00P0=D1/（k–g）

d.$40.00=1.80/（.16-.1）

=$30

（c,moderate）

15.WWWCompanycurrently（t=0）earns$4.00pershare,andhasapayoutof40percent.Dividendsareexpectedtogrowataconstantrateof8percentperyear.Therequiredrateofreturnis15percent.Thepriceofthisstockwouldbeestimatedat

a.$57.14.Solution:

D0=$4x.4=$1.60

b.$22.86.D1=1.60（1.08）=1.73

c.$10.67.P0=D1/（k–g）=1.73/（.15-.08）=

d.$24.69.$24.69

（d,moderate）

16.TylerToyscurrentlyearns$3.00pershareandcurrentlypays$1.20pershareindividends.Itisexpectedtohaveaconstantgrowthrateof7percentperyear.Therequiredrateofreturnis14percent.Whatistheintrinsicvalueofthisstock?

a.$42.86Solution:

D0=$1.20

b.$18.34D1=1.20（1.07）=1.28

c.$17.14P0==1.28/（.14-.07）=d.$40.05$18.34

（b,moderate）

OtherDiscountedCashFlowApproaches

17.Whichofthefollowingstatementsregardingintrinsicvalueandmarketpriceistrue?

a.Ifintrinsicvalueisgreaterthanthecurrentmarketprice,thestockshouldbeavoidedor,ifalreadyheld,sold.

b.Ifintrinsicvalueislessthanthecurrentmarketprice,thestockisundervalued.

c.Ifintrinsicvalueisequaltothecurrentmarketprice,thestockiscorrectlyvalued.

d.Iftheintrinsicvalueisgreaterthanthecurrentmarketprice,thestockisconsideredspeculative.

（c,moderate）

18.Analystsoftenusea________%ruleinsecurityvaluationinrecognitionofthefactthatestimatingasecurity'svalueisaninexactprocess.

a.5

b.10

c.15

d.20

（c,difficult）

19.IntheStreetsmartGuidetoValuingaStock,thediscountrateusedisthe:

a.risk-freerate.

b.risk-freerateplusariskpremium.

c.after-taxweightedaveragecostofcapital.

d.before-taxweightedaveragecostofcapital.

（c,difficult）

20.Whichofthefollowingsituationsindicatesasignaltosellastock?

a.IV>CMP

b.IV

c.IV=CMP

d.Impossibletodetermine.

（b,easy）

21.Amajordifferencebetweenthedividenddiscountmodel（DDM）andthefreecashflowtoequitymodel（FCFE）isthattheFCFE:

a.accountsforpotentialcapitalgainsandtheDDMdoesnot.

b.measureswhatafirmcouldpayoutindividendsandtheDDMmeasureswhatisactuallypaid.

c.measuresbothdividendgrowthandstabilityandtheDDMonlymeasuresthedividendgrowth.

d.basesitscalculationsonfuturevaluetechniqueswhiletheDDMusespresentvaluecalculations.

（c,difficult）

22.Whichofthefollowingmodelsincorporatesdebtfinancing,includingboththerepaymentandinterestonexistingdebtasthesaleofnewdebt,aswellaspreferredstockfinancing?

a.FCFEmodel

b.FCFFmodel

c.constantgrowthratemodel

d.multiplegrowthratemodel

（b,difficult）

RelativeValuationTechniques

23.UndertheP/Emodel,stockpriceisaproductof:

a.EPSandDPS

b.P/EratioandEPS

c.EPSandrequiredreturn

d.P/Eratioandrequiredreturn

（b,easy）

24.Afirmhasnetincomeof$1millionwith250,000sharesoutstandingwithatotalmarketvalueof$16million.WhatisitsP/Eratio?

a.64Solution:

1mil/250,000=$4EPS

b.416mil/250,000=$64MPS

c.3264/4=16P/ERATIO

d.16

（d,moderate）

25.Ifinterestratesriseandotherfactorsremainconstant,theP/Eratioofacompanywill:

a.becomenegative.

b.increase.

c.decrease.

d.becomemorevolatile.

（c,moderate）

26.WhichofthefollowingvariableshasaninverserelationshipwiththeP/Eratio?

a.payoutratio

b.expectedgrowthrateofdividends

c.expectedgrowthrateofearnings

d.requiredrateofreturn

（d,difficult）

27.WhichofthefollowingchangeswilllikelyleadtoahigherP/E,assumingotherfactorsareequal?

a.Adecreaseinthedividendpayoutratio

b.Anincreaseingrowthrateofearnings

c.Anincreaseintherequiredrateofreturn

d.Adecreaseinthedividendyield

（b,moderate）

28.WhichofthefollowingstatementsregardingP/Eratiosistrue?

a.Generally,theriskierthestock,thehighertheP/Eratio.

b.Inrecentyears,thesmallcapitalizationstockshadthehighestP/Eratios.

c.Asinterestratesincrease,P/Eratiosareexpectedtodecline.

d.GrowthprospectsoftenleadtohigherP/Eratios.

（b,difficult）

29.Economicvalueaddedisthedifferencebetween:

a.operatingprofitsandcostofcapital.

b.operatingprofitsandcostofequity.

profitsandcostofcapital.

profitsandcostofequity.

（a,difficult）

30.Astockthatiscurrentlyenjoyingastrongdemandbyinvestorswouldlikelytohave:

a.ahighdividendyield.

b.ahighP/Eratio

c.ahighpayoutratio

d.ahighrequiredreturn

（b,moderate）

31.Bookvalueis:

a.thesameasmarketvalue.

b.amoreaccuratevaluationtechniquethanthedividendmodels.

c.theaccountingvalueofthefirmasreflectedinthefinancialstatements.

d.thesameasliquidationvalue.

（c,easy）

32.Acompanyhasapricetosalesratioof1.10,annualsalesof$2billionand100millionsharesofcommonstockoutstanding.Itsstockpriceis:

a.$20Solution:

2billion/100million=$20Salespershare

b.$18.18$20x1.10PSR=$22MPS

c.$17.52

d.$22.00

（d,moderate）

33.Thepricetobookvalueratiotendstobeclosefor:

a.high-techcompanies.

b.banks.

c.utilities.

d.servicecompanies.

（b,moderate）

34.Whichofthefollowingstatementsconcerningpricetobookvalueistrue?

a.Thereisaninverserelationshipbetweenpricetobookvaluesandmarketprices.

b.Itiscalculatedastheratioofpricetothebookvalueofassets.

c.Thereissupportingevidencethatstockswithlowpricetobookvaluessignificantlyoutperformthemarket.

d.Pricetobookvalueratiosformanystocksrangefrom5.5to10.5.

（c,difficult）

35.Theprice/salesratioindicates:

a.theamountofriskinthefirm’soperations.

b.whatthemarketiswillingtopayforafirm’srevenues.

c.thepriceadvantageacompanyhasforitsbrandnames.

d.whattheanalystsseeasthebreakupvalueofthefirm.

（b,moderate）

36.Arelativelynewvaluationtec