Suacer Inc a stable state company earned a net profit of $ 75,000 for year 2013 (last year) and paid a total dividend of $30,000 for the year. The company's total assets stood at $562,500 and debt stood at $187,500. The company's current market capitalization is $ 675,000. Which of the below statement with respect to Saucer Inc are most likely correct
I. The growth rate of profit of the company is 12%
II. The company's cost of equity should be less than 16.9% if one were to call the stock as undervalued
III. The price to Book ratio of the company is 1.80X
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Shashank agreed (obligation) to buy 100 shares of Apple inc at a price of $ 49/ share at the end of June 2014 from Gurjit. Which of the below is LEAST likely to be Shashank's transaction
Given that Return on Equity is less than Cost of equity at the points where growth is less than cost of equity, as dividend payout ratio increases justified Price to Earnings Ratio will ------------------- (All else remaining the same).
Vasco did a study and found that on an average fund managers focusing on fundamental valuation have outperformed the market in the last 5 years. Which of the below is LEAST likely conclusion that Vasco can arrive after this finding
I am planning to take CFA level1 exam in december 2014 , Can somebody suggest how to prepare for it , Is the material provided at the time of registration sufficient ? I don't have prior finance knowledge .
“It has been observed that UK's telecom industry has been witnessing sluggish revenue growth of 2-4%. The price cut by any one operator triggers a price war frequently, however while the industry is still profitable the margins are declining”. According to the Industry Lifecycle framework the UK telecom industry is most likely in
Sally an analyst is evaluating Brzier Inc for buyout. He noticed that the company's balance sheet reported a total assets of $ 350,000 which included $10,000 of cash. The company has a financial leverage of 2.0X. The company also had a large land parcel which is being carried t $200,000 however Sally's analysis of current prices suggested that this land parcel could be worth $ 450,000. Based on this information the minimum value that Sally should ascribe to purchase the equity of Brzier Inc would be closest to
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The Price to Book value of Seger Inc's common equity is 2.20X and its Return on Equity is 16% (calculated based on ending book value of equity). The company reported an Earnings Per Shares (EPS) of $ 12.24. The Price to earnings ratio of Seger's shares based on the information is closest to
