|
|
Question:41
, G6 S' g; k3 JThere 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:! O' `/ X, t1 g* l0 @
A)product segmentation.
' A$ r5 E. m3 c- QB)ease of entry into the industry.
' k4 Y5 Q, z% l q8 `2 X' nC)degree of industry concentration.
; M- {0 T& V$ r8 h* MD)product demographics., y: l1 e0 u& w# }) B4 S1 X+ [/ E
% d; r; d- n/ g M, `1 @) h, L; kQuestion:42 ' ?9 h5 l u* i" o( R8 T
Jax, 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?
1 A6 w& ]; @) v8 |; k) Q1 KA)$39.47.
% N. u7 H! ?: IB)unable to determine value using Gordon model.
7 ^5 n1 a! C' w+ S. V1 k; xC)$53.32.3 O. Y6 Z" t2 i u* _1 t0 t8 o+ Q
D)$58.24.
* x+ K5 }+ g" E z6 H9 |; r- l! T* n7 G# ]6 J8 Z
7 X$ k" D+ A( m( S5 n1 L7 ~& ]
Question:43 ( k2 W& [& T5 Q
The difference between free cash flow to equity (FCFE) and free cash flow to the firm (FCFF) is:
" z+ |' m! H: D9 WA)earnings before interest and taxes (EBIT) less taxes." m7 X0 C' E+ w6 L7 W
B)after-tax interest and net borrowing.
$ t X+ G' ^, WC)before-tax interest and net borrowing.. }6 ], j( k+ r% R: O3 D4 J! v! T. v
D)capital expenditures.
4 U8 E1 T2 P( z q; I4 j; A. B6 ~4 w% ^8 F$ T3 E, y3 d
Question:44
6 a6 b+ V& r; v: _, o* O/ _+ 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?/ ?4 h0 h1 n: h8 M$ t
A)0.67." |1 A2 I$ U4 U9 u% @
B)150.00.
" f$ w4 g( l, J) r! d! BC)6.67.
% a j1 u5 j" u: r! g$ m- I3 ^D)1.50.
. u5 d/ l* P% k+ _. T
0 h& T, T& o xQuestion:45* z7 l! p6 V# M5 x8 a# A( A
A method commonly used to normalize earnings is the method of:
1 p5 H$ I( e5 u8 @A)average return on assets.
$ n" d* q0 G- s$ m1 W$ o' qB)historical average earnings per share (EPS).: r# h) o$ r8 }2 t. w: i" Y
C)comparables.5 z. u- M0 [- e
D)forecasted fundamentals.: J- L. P# L5 k3 p
L9 A5 f q& b5 m4 U
{2 N% m" O. h' Y- v l* Z1 \
% x7 C% C; h* L' s( r# W! _ |
|