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Question:41
* I& u8 Z" h" F9 d+ WThere 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:/ w& f6 r0 B2 ~ X0 n1 G
A)product segmentation.: E% b: Z0 c; ?: N. e* g# K5 m) @
B)ease of entry into the industry.6 B& _" q) [$ v$ ]. |1 f1 U+ p& E
C)degree of industry concentration.
1 F" \" n5 R& ?5 iD)product demographics.8 c: T' t! g5 Q" X/ Q) x& |5 M$ b
u+ _" _8 n( D. @9 ] A) C
Question:42
1 h4 Z C& @" E" f" xJax, 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?
0 B1 m! g. T/ j T5 [A)$39.47.* w" \2 K% J% f3 N& R+ A2 p: r
B)unable to determine value using Gordon model.; G* n) y7 m1 ~. U
C)$53.32.% V% w+ a' X# z% o4 s
D)$58.24./ L9 H4 ~% U+ F \, m3 e. I9 u
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( H. b5 S' `) ~- O' ]( dQuestion:43 + @9 W% ]* y5 g- W+ k/ w5 p
The difference between free cash flow to equity (FCFE) and free cash flow to the firm (FCFF) is:
; d" ^- y3 @5 y$ ZA)earnings before interest and taxes (EBIT) less taxes. p+ z* n# \- n# Z- r! O: C
B)after-tax interest and net borrowing.
; e' E; m" [0 y& J+ c( m. Q: pC)before-tax interest and net borrowing." ]+ \/ k2 J, r! ^; ]& ?
D)capital expenditures.
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! x V+ o1 _- P! p3 U/ KQuestion:44$ a1 y5 h5 g9 [5 `3 P; H# o/ |
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?
5 @- x: \ J: u2 @A)0.67.
- V- w8 X) ]4 b! ?B)150.00.. I( D; B" L9 [" {5 Z: O5 w. S* w4 H+ P
C)6.67.
; c r0 I9 m" ^- ?( r% zD)1.50.
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?. ?& I' Z2 M' o* S, z0 mQuestion:45/ k" N# A U; j) H- r
A method commonly used to normalize earnings is the method of:
$ W! t Q3 A. ~+ ?5 [3 X) xA)average return on assets.
" C+ E) ]2 H5 f3 A |7 fB)historical average earnings per share (EPS).' n1 S) P7 y n
C)comparables.- @. {& h- Q2 a t! N0 c
D)forecasted fundamentals.
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