The two main approaches to equity analysis are the relative valuation models and… a. The discounted earnings models. b. The depreciated cash-flow models. c. The discounted cash-flow models. d. The depreciated capital models.
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The two main approaches to equity analysis are the relative valuation models and…
a. The discounted earnings models.
b. The depreciated cash-flow models.
c. The discounted cash-flow models.
d. The depreciated capital models.
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- The two main approaches of equity analysis are: a. The discounted cash flow models and the absolute valuation models. b. The discounted cash flow models and the relative valuation models. c. The rate of return and risk. d. The Price-to-Earnings ratio and the Price-to-Book-Value ratio.The capital asset pricing model expresses the cost of equity as a function of a return on riskless assets, a market premium, and: Select one:a. Unsystematic risk.b. None of these.c. The cost of debt.d. Systematic risk.This is a generalized framework for analyzing the relationship between risk and return: a. capital asset pricing model b. diversification theory c. capital market line d. arbitrage pricing theory
- Which are valid methods for finding the cost of equity? Check all that apply: 1. The dividend discount model approach 2. The perpetuity approach 3. The YTM approach 4. The CAPM or SML approachWhich of these are not the method of financial statement analysis a. Ratio Analysis b. Comparative Analysis c. Trend Analysis d. Capitalisation MethodThe return on assets ratio is a: Group of answer choices A)Liquidity ratio. b)Solvency ratio. C)Profitability ratio. D)Market indicator ratio. e)None of the above
- The appropriate benchmark for the return on equity is: A)the weighted average cost of capital. B)the cost of equity. C)the interest free rate. D)none of the above.Which of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection PeriodThe return on assets ratio is a: Liquidity ratio. Solvency ratio. Profitability ratio. Market indicator ratio. O None of the above
- What have been the possible reasons for the changes in Return of Equity (ROEs )? •Decompose the ROE into the main components: ROA and EM (Equity Multiplier) •Analyse the sources of Return of Asset (ROA) : Asset Utilisation (AU) and Profit Margin ratios.(PM) •Identify the sources of the changes in Asset Utilisation and Profit MarginWhich of the following is TRUE? I. Internal rate of return (IRR) is a major method for determining the cost of equity. II. The cost of capital depends on the source of the funds. Group of answer choices I and II II only Neither I nor II I onlya. What is Liquidity Ratio? b. What is Asset Management Ratio?