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NEW QUESTION: 1
George Armor, CFA, is a new stock analyst for Pedad Investments. One tool that Pedad uses to compare stock valuations is the dividend discount model (DOM). In particular, the firm evaluates stocks in terms of
"justified" multiples of sales and book value. These multiples are based on algebraic manipulation of the DDM. Over time, these multiples seem to provide a good check on the market valuation of a stock relative to the company's fundamentals. Any stock which is currently priced below its value based on a justified multiple of sales or book value is considered attractive for purchase by Pedad portfolio managers. Exhibit 1 contains financial information from the year just ended for three stable companies in the meat-packing industry: Able Corp, Baker, Inc., and Charles Company, from which Armor will derive his valuation estimates.

One of Pedad's other equity analysts, Marie Swift, CFA, recently held a meeting with Armor to discuss a relatively new model the firm is implementing to determine the P/E ratios of companies that Pedad researches. Swift explains that the model utilizes a cross-sectional regression using the previous year-end data of a group of comparable companies' P/E ratios against their dividend payout ratios (r), sustainable growth rates (g), and returns on equity (ROE). The resulting regression equation is used to determine a predicted P/E ratio for the subject company using the subject company's most recent year-end data. Swift has developed the following model, which has an R-squared of 81%, for the meat packing industry (16 companies):
Predicted P/E = 2.74 + 8.21(r) + 14.21(g) + 2.81(ROE)
(STD error) (2.11) (6.52) (9.24) (2.10)
After Swift presents the model to Armor, she points out that models of this nature are subject to limitations.
In particular, multicollinearity, which appears to be present in the meat packing industry model, can create great difficulty in interpreting the effects of the individual coefficients of the model. Swift continues by stating that in spite of this limitation, models of this nature generally have known and significant predictive power across different time periods although not across different stocks.
Based on Exhibit 1, indicate the company that has the lowest predicted P/E utilizing the meat packing industry model presented by Swift.
A. Able Corp.
B. Charles Company.
C. Baker, Inc.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Based on the model presented, the predicted P/E ratios can be calculated as:
Able: 2.74 + 8.21(1.00 / 2.50) + 14.21(0.15) + 2.81(0.25) = 8.85
Baker: 274 + 8.21(1.60/4.80) + 14.21(0.10) + 2.81(0.15) = 7.32
Charles: 2.74 + 8.21(2.50/4.00) + 14.21(0.03) + 2.81(0.08) = 8.52
(Study Session 12,LOS42.g)

NEW QUESTION: 2
You want to migrate your database to ASM, so you've done a clean shutdown, made a closed backup of the entire database, noted the location of your control files and online redo log files, and changed your spfile to use OMF. The last step is to run an RMAN script to do the conversion. Using the following steps, what is the correct order in which the following RMAN commands should be executed?
1.STARTUP NOMOUNT
2.ALTER DATABASE OPEN RESETLOGS
3.SQL "ALTER DATABASE RENAME 'logfile1 path' TO '+dgrp4 '" # plus all other logfiles
4.SWITCH DATABASE TO COPY
5.BACKUP AS COPY DATABASE FORMAT '+dgrp4'
6.ALTER DATABASE MOUNT
7.RESTORE CONTROLFILE FROM 'controlfile_location'
A. 1, 7, 6, 5, 4, 3, 2
B. 7, 3, 1, 5, 6, 2, 4
C. 2, 5, 3, 1, 7, 6, 4
D. 5, 1, 2, 7, 4, 6, 3
Answer: A

NEW QUESTION: 3
Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)
A. Achieving advantage over competitors.
B. Acquisitions, disposals and diversification.
C. Meeting the needs of key customers.
D. Leaving existing industries.
E. Avoiding competitive disadvantages.
F. Entering new industries.
Answer: B,C,E

NEW QUESTION: 4
DRAG DROP
Drag and drop the IGMPv2 timer on the left to its default value on the right.

Answer:
Explanation: