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

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

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

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

CAPITOLO 6

Understanding Financial Metrics Quiz

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