Question 1

An analysis of which of the following are commonly included as part of fundamental analysis?
I.sales
II.book value
III.earnings per share
IV.cash flow

Accepted Answer

A) I and II only 
B) I and IV only 
C) II, III, and IV only 
D) I, II, and IV only 
E) I, II, III, and IV 
A) I and II only 
B) I and IV only 
C) II, III, and IV only 
D) I, II, and IV only 
E) I, II, III, and IV

Question 2

Stuart,Inc.reported net income of $20 million for last year.Depreciation expense totaled $15 million and capital expenditures came to $5 million.Free cash flow is expected to grow at a rate of 6% for the foreseeable future.Stuart faces a 40% tax rate and has a 0.30 debt to equity ratio with $75 million (market value)in debt outstanding.Stuart's equity beta is 1.1,the risk-free rate is currently 6% and the market risk premium is estimated to be 8.0%.What is the current value (in millions)of Stuart's equity?

Accepted Answer

A) $237.34 
B) $352.42 
C) $427.42 
D) $556.79 
E) $689.10 
A) $237.34 
B) $352.42 
C) $427.42 
D) $556.79 
E) $689.10

An analysis of which of the following are commonly included as part of fundamental analysis? I.sales II.book value III.earnings per share IV.cash flow

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return, Risk, and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters

Exam 6: Common Stock Valuation