Free CFA-Level-II Exam Braindumps (page: 6)

Page 6 of 31
View Related Case Study

The cost of equity and the sustainable growth rate (using beginning equity) are closest to:
Cost of equity Sustainable growth rate

  1. 6% 8%
  2. 10% 8%
  3. 10% 16%

Answer(s): B



View Related Case Study

The 2009 estimate of FCFF is closest to:

  1. $191, 646.
  2. $210, 329.
  3. $215, 329.

Answer(s): A



View Related Case Study

Warner determines that on a per-share basis, the FCFE for GDW in 2008 is $0.19. Further analysis suggests that FCFE per share will grow by $0.02 in each of the next two years before leveling off to a long-term growth rate of 5%. The current value of one share of GDW's equity is closest to:

  1. $4.37.
  2. $7.15.
  3. $13.49.

Answer(s): A



View Related Case Study

Which corporate event that Warner is analyzing is likely to have the largest effect on FCFE in 2009?

  1. Share repurchase.
  2. Share offering.
  3. Convertible bond issue.

Answer(s): C



Page 6 of 31



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