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Series 86 Conceptual Questions and answers verified 2024
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Series 86 Conceptual Questions and answers verified 2024
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Series 86 Conceptual Questionsexamination of residual income to determine investment opportunity is least
appropriate when
the company has consistent dividends
a firm's enterprise value is less than the market capitalization of its common
stock. this may be because the company has:
more cash than debt
the difference between FCFF and FCFE is
the application of unlevered net income to derive FCFF, rather than net
income to derive FCFE
when valuing a mature company in the financial services industry that has
reached its terminal growth rate, which of the following metrics is least likely to
be used
PEG
what is the importance of using EBITDA when comparing one company to
another
it eliminates the effects of different levels of debt & it neutralized the effects of
different methods of amortization
, in order for a company to add value for its equity stakeholders
ROE must except the cost of equity
what is one of the advantages of using leading EPS when calculating the P/E
ratio
nonrecurring items may be neutralized
one of the main considerations in the SOTP analysis is that valuation is based
on the concept that
separate segments of the company may be worth more individually than
combined
earnings yield represents
the amount of earnings that one dollar of investment will purchase
the company with the lowest EV/EBITDA is the most...
undervalued
a P/E that is significantly higher than the S&P 500 index is indicative of....
growth company
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