Ntu Career

Score 120 show up of 120 points (100%) 1. give 10 out of 10 points Which of the following valuation measures is often employ to compare heartys which have no earnings? Price-to-book ratio P/E ratio Price-to-cash flow ratio Price-to-sales ratio 2. appoint 10 out of 10 points When Googles share outlay reached $475 per share Google had a P/E ratio of about 68 and an estimated grocery capitalization consec station of 11. 5%. Google pays no dividends. What percentage of Googles take price was represented by PVGO? 92% 87% 77% 64% 3. award 10 out of 10 points A firm is pass judgment to produce earnings next class of $3. 00 per share.It plans to reinvest 25% of its earnings at 20%. If the cost of equity if 11%, what should be the harbor of the shopworn? $27. 27 $50. 00 $66. 67 $70. 00 g = . 25 x . 20 = . 05 P = 3. 0/(. 11 . 05) = 50. 00 4. award 10 out of 10 points The free cash flow to the firm is describe as $198 one cardinal million million. The interest expense to the fi rm is $15 million. If the tax rate is 35% and the net debt of the firm increased by $20 million, what is the market economic value of the firm if the FCFE grows at 3% and the cost of equity is 14%? $1,893 billion $1,893 billion $2,497 billion $2,585 billion $3,098 billion FCFE = 198 15(1 . 35) + 20 = 208. 5. quantify = 208. 25/(. 14 . 03) = 1893. 5. award 10 out of 10 points If a firm has a free cash flow equal to $50 million and that cash flow is judge to grow at 3% forever, what is the total firm value given a WACC of 9. 5%? $679 million $715 million $769 million $803 million Total value = 50/(. 095 . 03) = 769. 23 6. award 10 out of 10 points A firm has a roue price of $54. 75 per share. The firms earnings are $75 million and the firm has 20 million shares outstanding. The firm has an ROE of 15% and a plowback of 65%. What is the firms PEG ratio? 1. 50 1. 25 1. 10 1. 00 7. award 10 out of 10 pointsAce Frisbee Corporation produces a good that is in truth mature in their pro duct life cycles. Ace Frisbee Corporation is anticipate to pay a dividend in year 1 of $3. 00, a dividend in year 2 of $2. 00, and a dividend in year 3 of $1. 00. by and by year 3, dividends are pass judgment to decline at the rate of 2% per year. An appropriate required give way for the filiation is 8%. use the multistage DDM, the stock should be worth __________ today. $13. 07 $13. 58 $18. 25 $18. 78 8. award 10 out of 10 points Caribou Gold Mining Corporation is expected to pay a dividend of $4 in the upcoming year. Dividends are expected to decline at the rate of 3% per year.The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of -0. 50. Using the CAPM, the return you should require on the stock is _________. 2% 5% 8% 9% 9. award 10 out of 10 points You are considering acquiring a common share of Sahali Shopping Center Corporation that you would kindred to hold for one year. You expect to receive both $1. 25 in dividends and $35 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 12% return. 31. 25 $32. 37 $38. 47 $41. 32 10. award 10 out of 10 points Each of two stocks, A and B, are expected to pay a dividend of $7 in the upcoming year. The expected comeback rate of dividends is 6% for both stocks. You require a return of 10% on stock A and a return of 12% on stock B. Using the constant produce DDM, the intrinsic value of stock A _________. will be higher than the intrinsic value of stock B will be the same as the intrinsic value of stock B will be less than the intrinsic value of stock B more information is necessary to answer this wonder award 11. ward 10 out of 10 points If a firm increases its plowback ratio this will probably result in a(n) _______ P/E ratio. higher lower unchanged unable to determine 12. award 10 out of 10 points If a stock is correctly priced then you know that ____________. the dividend payout ratio is optimal the stocks required return is equal to the growth rate in earnings and dividends the sum of the stocks expected capital gain and dividend yield is equal to the stocks required rate of return the present value of growth opportunities is equal to the value of assets in place