2. What would an investor be willing to pay for a share of preferred stock that paid an annual $5 dividend if the yield on preferred was 40 basis point below the A bond yield of 7%?
3. A stock paid a $3 dividend last year. An investor projects that next year's dividend will be 20% higher and that the stock will be selling for $60 at the end of the year. The risk-free rate of interest is 6% , the market return is 10% , and the stock's beta is 1.8. What is the value of the stock?
4. A stock will pay a $4 dividend next year, $5 the year after, and $4.3 the following year. An investor believes that he can then sell the stock for $65 at the end of a 3-year holding period. The risk-flee rate of interest is 8%, the market return is 12%, and the stock's beta is 1.1. What is the value of the stock?
7. A company paid a $1.5 dividend last year. The company is expecting dividends to grow at a 5% rate in the future. What is the value of the value of this stock if an investor requires a 12% rate of return on this stocks of this risk class?
A.$22.5
B.$24.3
C.$32.8
A B C
A
[解析] 根据无限期的股息贴现模型(DDM),有:
8. An analyst feels that Bayon Company's earnings and dividends will grow at 20% for two years, after which growth will fall to a market-like rate of 7%. If the discount rate is 13% and Bayon's most recently paid dividend was $3, what is the value of Bayon's stock using the multistage dividend discount model?
9. A company will experience a 30% growth rate over the next four years and pay no dividends over that time period. Growth will then fall to 5%, at which time the company will institute a 30% payout ratio. If the expected dividend in year 5 is projected to be $3 per share and the required return is 12%, what is the firm's intrinsic value today?
10. A firm has an expected dividend payout rate of 70% and an expected future growth rate of 4%. What should the firm's price-to-earnings (P/E) ratio be if the required rate of return on stocks of this type is 15%?
A.4.27
B.6.36
C.12.18
A B C
B
[解析] 根据盈余乘数模型,
11. A stock's P/E ratio based on the DDM is which of the following?
12. An analyst gathers the following data for a company to estimate the expected growth rate of dividends and use it as an input for valuing the company's common stock.
16. An analyst gathered the following financial information about a company:
estimated EPS
$2
dividend payout ratio
30%
required rate of return
10%
expected long-term growth rate of dividends
5%
What should the analyst estimate the value of this company's stock to be?
A.$8.7
B.$12.0
C.$13.5
A B C
B
[解析] 公司股票的估价P=预估每股盈余(EPS)×预期市盈率(P/E)=2×6=12(美元)
17. An analyst has made the following estimates for a stock:
dividends over the nest year
$0.3
long-term growth rate
14%
intrinsic value of stock
$17
The shares are currently priced at $14. Assuming the stock price moves to intrinsic value over the next year, what is the expected return on the stock?
A.9.6%
B.18.5%
C.23.6%
A B C
C
[解析] 基于该股票的市场价格在未来将回归到其内在价值的假设,该股票在回归期间内的预期总回报率为:
18. Which of the following statements least accurately describes the advantages and disadvantages of valuation with the P/E multiple?
A.Advantage: P/E differences are significantly related to long-run average stock returns. Disadvantage: The volatile, transitory portion of earnings makes the interpretation of P/Es difficult for analysts.
B.Advantage: Earnings power is the primary determinant of investment value. Disadvantage: Management discretion within allowed accounting practices can distort reported earnings.
C.Advantage: P/E valuation can accommodate negative earnings. Disadvantage: P/E valuation is difficult to use for firms with relatively few fixed assets.
19. An analyst gathered the following financial data about a company (in million dollars):
market value
$45
sales
$600
earnings
-$18
book value
$27
What is the P/BV ratio for the company?
A.0.42
B.1.67
C.2.32
A B C
B
[解析]
20. Which of the following statements least accurately describes the advantages and disadvantages of valuation with the P/S multiple?
A.Advantage: P/S is meaningful, even for companies in financial distress. Disadvantage: Sales growth is not always an indicator of profitability.
B.Advantage: Sales forecasts are not susceptible to distortion from revenue recognition practices. Disadvantage: Reported sales figures are easier to manipulate than earnings or book values.
C.Advantage: P/S ratios are particularly appropriate for valuing stocks in mature or cyclical industries. Disadvantage: P/S ratios do not capture differences in cost structures across companies.
21. Which of the following statements regarding the use of P/S multiples in stock valuation is least likely to be correct?
A.Revenue is relatively easy to manipulate compared to earnings.
B.P/S multiples are positive, even when earnings and book value are negative.
C.The use of P/S multiples facilitates analysis of the effects of changes in pricing policy and other corporate strategic decisions.
A B C
A
[解析] 与盈余相比,收入比较难以受到操纵。
22. A firm had revenue per share of $300 in the year of 2008, earnings per share of $3, and paid out 40% of its earnings as dividends. If the return on equity (ROE) and required rate of return of the firm are 14% and 12% respectively, what is the appropriate P/S multiple for the firm?
23. An analyst gathered the following financial data about a company:
share price
$8
shares outstanding
50 million
expected sales
$170 million
total operating expenses
$80 million
operating expenses (depreciation and amortization)
$3 million
What is the P/CF ratio (using EBITDA for cash flow per stock) for the company?
A.2.83
B.3.56
C.4.30
A B C
C
[解析]
24. Among a company's price to earnings (P/E), price to sale (P/S), and price to cash flow (P/CF) ratios, it is most accurate to state that P/E ratios are generally more stable from period to period than:
26. Consider a $3 million semiannual-pay floating-rate issue where the rate is reset on January 1 and July 1 each year. The reference rate is 6-month LIBOR, and the stated margin is +1.75%. If 6-month LIBOR is 7.45% on July 1, what will the next semiannual coupon be on this issue?
27. An investor paid a full price of $1035.70 each tor a group of bonds. The purchase was between coupon dales, and accrued interest was $34.12 per bond. What is each bond's clean price?
31. If an institutional investor wants to borrow money for 30 clays to finance a bond purchase, which of these is most likely to be the lowest loan rate available?
35. A 2-year, zero-coupon U.S. Treasury note is least likely to have:
A.inflation risk.
B.volatility risk.
C.exchange-rate risk.
A B C
B
[解析] 波动性风险只适用于包含嵌入期权的债券,从而本题的免期权债券最不可能具有波动性风险。
36. A straight 3% bond bas two years remaining to maturity and is priced at $973.4. A callable bond that is the same in every respect as the straight bond, except for the call feature, is priced at $925.2. With the yield curve flat at 5%, what is the value of the embedded call option?
37. The current price of a bond is $128.3. If interest rate change by 4%, the value of the bond price changes by $2.7 correspondingly. What is the duration of the bond?
A.0.53
B.1.27
C.2.48
A B C
A
[解析]
38. A bond with a 8.5% yield has a duration of 3.7 and is trading at $143. If the yield decreases to 8.2%, the new bond price is closest to:
39. An investor holds $1000000 (par value) worth of TIPS currently trading at par. The coupon rate of 6% is paid semiannually, and the annual inflation rate is 17%. What coupon payment will the investor receive at the end of the first six months?
43. A corporation issuing asset-backed securities can often improve the credit rating of the securities to above that of the issuing company by transferring the assets to a (n):
47. Assuming the following yields for different bonds issued by a corporation:
bonds type
yields
1-year bond
4.2%
2-year bond
5.3%
3-year bond
5.8%
If a 3-year U.S. Treasury is yielding 3.5%, then what is the absolute yield spread on the 3-year corporate issue?
A.0.7%
B.1.8%
C.2.3%
A B C
C
[解析] 绝对收益率差=高收益债券收益率-低收益债券收益率=5.8%-3.5%=2.3%
48. Assume an investor is in the 33% marginal tax bracket. He is considering the purchase of either a 8.2% corporation bond that is selling at par or a 5.6% tax-exempt municipal bond that is also selling at par. Given that the two bonds are comparable in all respects except their tax status, the investor should buy the:
A.corporate bond, since its after-tax yield is higher.
B.corporate bond, since it has the higher yield of 6. 3%.
C.municipal bond, since its taxable-equivalent yield is higher.