|
|
Question:41 $ h% F, r/ P" u( P; ]- N
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:8 A p# k5 i# N6 N! t
A)product segmentation.
; P0 V3 Z, M7 u" I8 G9 B0 OB)ease of entry into the industry.
/ f" m# X. ~, V5 ZC)degree of industry concentration.( h' f% ~) Y/ a6 G, N
D)product demographics.
* S/ C: w- Z- @/ C. k9 f* Y# t" n9 q4 n" L
Question:42
* Q* ~- H; n- EJax, 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?& K- m q6 _" u7 f/ }
A)$39.47.- y# i2 W6 y( h9 H6 w$ h
B)unable to determine value using Gordon model.
2 j; G: G; ~1 |# F# JC)$53.32.8 N& t! \; Y7 e) b9 u* c
D)$58.24.
& T% x" {* {1 f( D0 n4 @# u6 p# V k- N% m4 \
& _ @6 a" l7 w) }9 y- N
Question:43 - T8 ~0 A( _+ B- s1 Q
The difference between free cash flow to equity (FCFE) and free cash flow to the firm (FCFF) is:( ^% f; z; W" _: f& D& j+ V& x& n' \! J
A)earnings before interest and taxes (EBIT) less taxes.
% r! L6 a- Q. m; t! I2 b: U+ z7 wB)after-tax interest and net borrowing.# L4 F" W, L# w( _9 r
C)before-tax interest and net borrowing.$ Y0 w% {& p" S, }7 X$ g
D)capital expenditures.
' g) T4 j/ d" e+ V _9 f; t5 S0 W# `# }5 n" |
Question:44
9 [- `% {0 L% |: ]: @8 P6 DGood 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?
( O0 C, F7 z ^4 g2 OA)0.67.
% c' B- x. w9 |" j3 {8 g5 p' | pB)150.00.! z( _. l1 ^; _! Z- g) x2 E% u
C)6.67.
, E4 {& L1 @# C2 t8 B. KD)1.50.
% {4 K: O( |& m3 B' w1 f
4 z- x. w2 R& XQuestion:45
. F- n) a% J: m: w2 HA method commonly used to normalize earnings is the method of:
1 y, ]$ g. T" M. eA)average return on assets.
1 H/ K Z9 f2 ]7 aB)historical average earnings per share (EPS).. T) E4 o* N8 X1 B4 O
C)comparables.
- e# g7 o- X( F( |( H3 H! kD)forecasted fundamentals.
( Y7 N6 a6 a$ c& O
9 [- }4 g$ `$ J- m0 l" W( ^: v, Y; U+ x* u) R3 u( f
. o3 Y/ F, V1 J. J- l( d |
|