CAPITOLO 6

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Understanding Financial Metrics Quiz

Challenge your knowledge of financial metrics and valuation techniques with this engaging quiz! Whether you are a student, teacher, or finance enthusiast, this quiz will test your understanding of important concepts such as P/E ratios, market capitalization rate, and present value of growth opportunities.

Prepare to dive into various questions about:

  • P/E and PEG ratios
  • Market capitalization versus book value
  • Expected returns and dividends
  • Reinvestment and growth opportunities
15 Questions4 MinutesCreated by AnalyzingTrend243
P/E ratios tend to be _______ when inflation is ______.
Higher; lower
They are unrelated.
Higher; higher
Lower; lower
You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both $1.75 in dividends and $35 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 13% return
$ 32,52
$ 31,97
$ 42,24
$ 30,97
A firm has current assets that could be sold for their book value of $10 million. The book value of its fixed assets is $60 million, but they could be sold for $95 million today. The firm has total debt at a book value of $40 million, but interest rate changes have increased the value of the debt to a current market value of $50 million. This firm's market-to-book ratio is ________.
1,83
1,35
1,5
1,46
A firm has PVGO of 0 and a market capitalization rate of 17.0%. What is the firm's P/E ratio?
5,88
17,32
11,44
17,00
The price-to-sales ratio is probably most useful for firms in which phase of the industry life cycle?
Start-up phase
Relative decline
Consolidation
Maturity
The market capitalization rate on the stock of Aberdeen Wholesale Company is 8%. Its expected ROE is 10%, and its expected EPS is $3. If the firm's plowback ratio is 55%, its P/E ratio will be _________.
12,41
40,00
20,91
18,00
You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both $1.25 in dividends and $35 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 12% return.
$ 38,47
$ 31,25
$ 41,32
$ 32,37
Next year's earnings are estimated to be $4. The company plans to reinvest 20% of its earnings at 15%. If the cost of equity is 10%, what is the present value of growth opportunities?
$ 5,71
$ 4,71
$ 10,10
$ 6,71
A firm has a stock price of $59.50 per share. The firm's earnings are $85 million, and the firm has 20 million shares outstanding. The firm has an ROE of 12% and a plowback of 75%. What is the firm's PEG ratio?
1,56
1,39
1,23
1,40
Ace Ventura, Inc., has expected earnings of $5 per share for next year. The firm's ROE is 15%, and its earnings retention ratio is 40%. If the firm's market capitalization rate is 10%, what is the present value of its growth opportunities?
$ 31,25
$ 38,47
$ 41,32
$ 32,37
You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both $2.00 in dividends and $60 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 13% return.
$ 53,10
$ 53,94
$ 54,87
$ 71,26
A firm has a stock price of $60.00 per share. The firm's earnings are $90 million, and the firm has 15 million shares outstanding. The firm has an ROE of 13% and a plowback of 80%. What is the firm's PEG ratio?
0,96
1,76
1,84
0,88
A firm has PVGO of 0 and a market capitalization rate of 8.5%. What is the firm's P/E ratio?
11,76
21,90
10,13
8,50
Next year's earnings are estimated to be $3. The company plans to reinvest 30% of its earnings at 20%. If the cost of equity is 11%, what is the present value of growth opportunities?
$ 14,73
$ 13,73
$ 15,73
$ 11,11
The market capitalization rate on the stock of Aberdeen Wholesale Company is 9%. Its expected ROE is 11%, and its expected EPS is $3. If the firm's plowback ratio is 60%, its P/E ratio will be _________.
16,67
11,90
41,67
21,50
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