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Question:41 6 b' _ _: ?2 x
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:) |4 d. t2 n$ e/ \- U% C3 z+ F6 m
A)product segmentation.
- L S% ~! }$ k- r4 ?+ d9 K( m$ K1 FB)ease of entry into the industry.$ M1 C, K, d( Q! k% p
C)degree of industry concentration.
s! S- ^! C4 L" BD)product demographics.
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Question:42
9 I, {, u2 {$ Y5 { x$ tJax, 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?' _2 z6 t ^( |) z* J3 _4 D) `6 z
A)$39.47.
5 y7 x3 W8 O$ J" }" \B)unable to determine value using Gordon model.
, B9 V$ V$ P4 S# q! MC)$53.32.2 n$ u$ k7 Y/ v: g1 M
D)$58.24.
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Question:43 1 G# g# l' l* M9 Q6 r3 ]& _
The difference between free cash flow to equity (FCFE) and free cash flow to the firm (FCFF) is:7 g4 C, K3 C: W
A)earnings before interest and taxes (EBIT) less taxes.; `6 ]1 k) _/ r9 l$ Z* D* s
B)after-tax interest and net borrowing.9 W D3 @6 {; l& e0 S: ^! K
C)before-tax interest and net borrowing.; m2 D2 k" R2 Q( V$ P2 c) T5 U- J
D)capital expenditures.
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Question:44, d& k& x/ a0 h3 y3 W4 {
Good 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?
& l$ u6 F7 W; @3 a' pA)0.67.
9 g% {/ _2 O1 N1 F" l, vB)150.00.) t2 ~# ^6 q+ O8 b" ^
C)6.67.
& h. m* P: R- zD)1.50.
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0 h" R8 I8 X! j+ ZQuestion:45# j T9 U# o4 _3 Q4 Q) h
A method commonly used to normalize earnings is the method of:
! `& g, H: ^* P/ {A)average return on assets./ P; C8 B5 u9 Z
B)historical average earnings per share (EPS).) _' O" V: C5 u3 n+ m% y8 u% P
C)comparables., {, s- D, W0 h8 I+ M$ P/ W8 K8 o ?
D)forecasted fundamentals.% P2 j! n1 F; ]7 n& Y" c4 n3 P
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