|
|
Question:41
0 v& F! j1 B8 Z1 m `There are at least four factors that contribute to a firm’s profitability and pricing decisions. All of the following are factors that firms consider when establishing their pricing practices EXCEPT:2 [# l. @$ S2 H R9 c# V
A)product segmentation., X! f7 k) N, h0 E. \6 o/ ]5 w5 a9 y
B)ease of entry into the industry.; k! J$ I, P& ]% d1 O
C)degree of industry concentration.
`& O9 L W" fD)product demographics.
/ q4 {! @2 Q/ N+ v4 o: E
" @$ E8 p0 ?# u. ?. C0 L* S; {' Z6 |Question:42
& }' f; S; q4 G3 \# BJax, Inc., pays a current dividend of $0.52 and is projected to grow at 12 percent. If the required rate of return is 11 percent, what is the current value based on the Gordon growth model?
8 i) C9 C8 k( r* yA)$39.47.# d$ _) \$ K. b
B)unable to determine value using Gordon model.
" s: T3 T2 b% f4 r1 m/ w3 o- q( c' d# j8 MC)$53.32.# u6 T) q' L+ S% {$ v4 l/ | a
D)$58.24.
7 ~- k- t$ W1 V
) C7 y5 F+ m. A J( S! _ Y
5 c* z. R$ p& b1 `; DQuestion:43
- \% |2 {7 d' S) ?The difference between free cash flow to equity (FCFE) and free cash flow to the firm (FCFF) is:
: E' [% o) y0 m) \, f+ n: [A)earnings before interest and taxes (EBIT) less taxes.- u9 t% ^. ?! g6 p
B)after-tax interest and net borrowing.
% V5 M1 d8 }' _C)before-tax interest and net borrowing.
& M/ z8 G9 x C; s1 GD)capital expenditures.
- I* Q. H5 P5 N2 \ X/ e: |3 h4 t5 W3 m
Question:44
) r+ U$ i0 J, @$ Y0 X, KGood Sports, Inc., (GSI) has a leading price to earnings (P/E) ratio of 12.75 and a 5-year consensus growth rate forecast of 8.50 percent. What is the firm’s P/E to growth (PEG) ratio?% p' T$ ]1 I1 C
A)0.67.+ h$ D8 Y9 ]7 v
B)150.00.9 S+ ]/ K* l% ]. H& Y4 \" b
C)6.67.: e) Y8 z3 F6 ?3 v/ C3 d
D)1.50.
; D* k* L% A! x# j0 y' |, d: T
( r( g6 W. J# R7 mQuestion:459 y4 e& Q, \$ \* W1 K9 X! x5 }
A method commonly used to normalize earnings is the method of:9 \& D" H3 {5 V8 c* k' Q& C* w
A)average return on assets.
& k' W& s" X* AB)historical average earnings per share (EPS).- G, l% m) P! D+ s" G5 f
C)comparables.
. g1 \# d% l9 I: {% T: hD)forecasted fundamentals.
8 w+ N2 j1 C! Y: T1 q" U, L! d6 t# w
4 P/ c1 \& |) u+ y# Z% U
3 P% _7 p7 b8 Q6 z0 U2 R$ R1 O5 \
M! n+ u+ h/ r" X: d6 i |
|