Counter cyclical stock - Study guides, Class notes & Summaries

. What's an appropriate growth rate to use when calculating the Terminal Value? - answer-Commonly, we use the country's long term GDP growth rate or rate of inflation (usually something converservative) . Why would you use the Gordon Growth Method rather than the Multiples Method to calculate the Terminal Value? - answer-There may be a few reasons why we may want to use the gordon growth method. 1) if there are no good comparable companies 2) if the industry is cyclical, it may be ...

SIE Exam Preview/Recap. 100% Coverage. Comprehensive, Guaranteed understanding. purpose of securities industry - matching investors with money to issuers that need that money to finance issuer - legal entity that sells securities in order to finance its operations (business, governments) ie. us treasury, us gov agencies, foreign governments, state and local governments, corps, banks methods issuers use to raise capital - 1) issue debt securities (bonds) and 2) issues equity securities (...

1. Financial literacy is your knowledge of facts, concepts, principles, and technological tools that are fundamental to be smart about money. a. True b. False ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Recognize the keys to achieving financial success QUESTION TYPE: Multiple Choice HAS VARIABLES: False KEYWORDS: Bloom’s: Remembering OTHER: Analytic DATE CREATED: 1/17/2017 12:41 AM DATE MODIFIED: 1/31/2017 11:55 AM 2. Being financially responsibl...

Preferred stock trades most like which of the following instruments? Straight debt security Because of the fixed dividend payment, preferred shares are influenced in the market by the same factors that impact straight debt securities. Like bonds, there is an inverse relationship between price and interest rates. (NOT convertible bonds) Business cycle predictability: Business cycles are generally considered to be random and unpredictable. While it is true that the sequence of the c...

Wallstreet Prep Valuation Test Questions and Answers 1. Could you explain the concept of present value and how it relates to company valuations?: The present value concept is based on the premise that "a dollar in the present is worth more than a dollar in the future" due to the time value of money. The reason being money currently in possession has the potential to earn interest by being invested today. For intrinsic valuation methods, the value of a company will be equal to the sum ...

Chapter 03 Test Bank KEY 1. Most of the variations in U.S. population growth have resulted from changes in A. birthrates and net migration. B. birthrates and death rates. C. net migration and death rates. D. birthrates and technological change. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe trends in the population and labor force. Topic: The Population Base 2. Compared to the basic work-leisure choice mo...

Which of the following is NOT a producer? - answer-An unemployed college student Which of the following is an ethereal added utility to a consumer? - answer-The smell of espresso What is the primary difference between microeconomics and macroeconomics? - answer-Microeconomics looks at scarcity for companies, while macroeconomics looks at it for entire economies. In economics, scarcity means that: - answer-There is a finite amount of resources. Economy A has a comparative advantage ov...

BIWS 400 QUESTIONS WITH COMPLETE SOLUTION 2023BIWS 400 QUESTIONS WITH COMPLETE SOLUTION 2023 Let's say I'm working on an IPO for a client. Can you describe briefly what I would do? - correct answer You meet with the client and gather basic information - such as their financial details, an industry overview, and who their customers are. You meet with other bankers and the lawyers to draft the S-1 registration statement - which describes the company's business and markets it to investors. Yo...

what is private equity and venture capital? - correct answer private equity and venture capital are both forms of an alternative investment. PE firms invest in private companies or engage in the buyout of public companies. VC is investing in illiquid securities of early stage companies what are the types of private equity funds? - correct answer venture capital, mezzanine, buyout, distress what is a leveraged buyout? - correct answer the acquisition of another company using ...