2020 level 2 Testbank 질문

• 과정명:Equity

• 강사명: 유태인 강사님 

안녕하세요 강사님.

지난번 만남에서 일부러 시간 내어주셔서 설명 잘해주셔서 많이 감사했습니다.

 Testbank page 34에 55번 문제입니다.

ROE 구하는 과정에서 Testbank 해답에서는 120/(800+159.3)=12.5라고 하는데 CFA Institute Internet 해설에서는 120/(800+87.3=13.5라고 했습니다.  다시 말씀드리면 CFA institute 해설은 2012 retainied earnings 값을 썼습니다.  어떤것이 정답인지 알려주시면 감사하겠습니다. 

Testbank page 19, 30번 문제입니다.

Exhibit 3에서 justified P/E가 trailing P/E와는 비교할수 있으나 Forward P/E와는 비교되지 못한다는 이유를 잘 이해하기 어렵습니다.  설명 부탁드립니다.  감사합니다. 

Testbank page 30, 48번 입니다.

Exhibit 1에서 Diluted EPS(next four quarters)정보로 P/E ratio 만들수 있는 것이 가능하니까 answer choice A도 정답이 될수 있지 않나요?  설명 부탁드립니다.  감사합니다. 

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Review Category Topic Area: Equity Valuation Question 209 of 429

Gianna Peters is an investment analyst who focuses on dividend-paying stocks. Peters uses a discounted cash flow (DCF) approach to stock selection. She is meeting with her staff to evaluate portfolio holdings based on a bottomup screening of stocks listed in the United State and Canada. Peters and her staff begin by reviewing the characteristics of the following portfolio candidates.

COMPANY ABC

A Canadian company in the consumer staples sector with a required rate of return of 7.35%. Recent media reports suggest that ABC might be a takeover candidate. Peters and her team estimate that if the incumbent Canadian prime minister's party retains its power, the company's

current annual dividend of C$0.65 per share will grow 12% a year for the next four years and then stabilize at a 3.5% growth rate a year indefinitely. However, if a new government takes office in Canada, then the team estimates that ABC will likely not experience the elevated 12% short-run growth because of new regulatory and tax changes, and instead will grow by 3.5% indefinitely.

COMPANY XYZ

A mid-sized US company in the utilities sector with a required rate of return of 10%. Peters and her team believe that because of a recent

restructuring, the company is unlikely to pay dividends for the next three years. However, the team expects XYZ to pay an annual dividend of US$1.72 per share beginning four years from now. Thereafter, the dividend is expected to grow indefinitely at 4% even though the current

price implies a growth rate of 6% during this same period.

COMPANY JZY

A large US company in the telecom sector with a required rate of return of 8%. The stock is currently trading at US$32.76 per share with an implied earnings growth rate of 5.3%. Peters believes that because JZY is mature and has a stable capital structure, the company will grow at its sustainable growth rate. Over the past 10 years, the company's return on equity (ROE) has averaged 8.17% and its payout ratio has averaged 40%. Recently, the company paid an annual dividend of US$0.84 per share.

Peters asks a newly hired analyst, Kurt Thomas, to comment on the evaluation approach for these three stocks. Thomas makes the following statements:

1. A free cash flow valuation model would not be appropriate to evaluate Company ABC if the firm becomes a takeover candidate.
2. A dividend discount model cannot be applied to Company XYZ if dividends are suspended for a few years.
3. A dividend discount model is suitable for evaluating the stock of Company JZY because of the historically consistent payout ratio.

Peters then asks the team to examine the growth opportunities of three Canadian stocks currently held in the portfolio. These stocks are listed in Exhibit 1. Peters believes that the stocks are fairly valued.

Exhibit 1

Selected Stock Characteristics

Solution

C is correct. A dividend discount model is especially useful when dividend policy bears an understandable and consistent relationship to the company's profitability. The relatively consistent dividend payout ratio suggests Company JZY would be a suitable candidate for a dividend discount model.

Discounted Dividend Valuation Learning Outcome 

b. Calculate and interpret the value of a common stock using the dividend discount model (DDM) for single and multiple holding periods

GIANNA PETER
209. Company XYZ에서 Peter and her team believe that because of recent restructuring, the company is unlikely to pay dividends for next three years라고 했는데 Anser choice B dividend discount model cannnot be applied도 정답이 될수 있지 않나요?

설명 부탁 드립니다.