Econ The Stock Market (30 question)

2020/12/15 测验: Final Exam

https://canvas.instructure.com/courses/2372168/quizzes/6190932/take 1/13

Final Exam 已开始： 12月15日 16:08

测验说明 You have 180 minutes to complete the exam. Please use your time efficiently and read the questions carefully. There are 30 questions, the exam is marked out of 100 points and all questions are equally marked. Assumptions:

Risk Free Rate 3%

Market Return 8%

ERP = Market return – Rf = 5%

Perpetuity Growth Rates

Dividend Growth Rate 3%

FCFF Growth Rate 3%

FCFE Growth Rate 3%

Tax rate 21%.

1 分问题 1

7.73%

10.4%

6.0%

8.3%

What is the average annual expected growth rate in Sales between 2021 and 2025?

1 分问题 2

2020/12/15 测验: Final Exam

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$ 48,684 million

$34,637 million

$67, 904 million

$72, 543 million

Sales in 2023 are expected to be:

1 分问题 3

12.45%

20.92%

16.03%

8.37%

What is the average annual expected growth rate in Net Income between 2021 and 2025?

1 分问题 4

$ 5,345 million

$3,134 million

$4,372 million

$7,904 million

Net Income in 2022 are expected to be:

2020/12/15 测验: Final Exam

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1 分问题 5

$406 million

$6,439 million

$340 million

$3,259 million

The Change in Net Working Capital in year 2022 is closes to:

1 分问题 6

$3,425 million

$734 million

$402 million

$1,287 million

Total capital expenditures for 2023 is closes to:

1 分问题 7

Assuming that NIKE has $3.4 billion in long term debt.

Issue Amount

$(Mil) Maturity

Date Yield To Maturity

NIKE 4.375% 750 1/15/2025 4.25%

NIKE 5.7% 800 1/15/2035 6.45%

2020/12/15 测验: Final Exam

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2.13%

3.72%

4.23%

5.49%

NIKE 5.4% 800 1/15/2033 5.93%

NIKE 3.875% 500 12/1/2040 3.47%

NIKE 6.7% 550 12/1/2036 6.96%

What is the weighted average cost of debt (average pre-tax cost of debt)?

1 分问题 8

9.2%

Assuming that NIKE has $3.4 billion in long term debt.

Issue Amount $(Mil)

Maturity Date

Yield To Maturity

NIKE 4.375% 750 1/15/2025 4.25%

NIKE 5.7% 800 1/15/2035 6.45%

NIKE 5.4% 800 1/15/2033 5.93%

NIKE 3.875% 500 12/1/2040 3.47%

NIKE 6.7% 550 12/1/2036 6.96%

Assuming the marginal tax rate is 21%, what is the company's after-tax cost of debt?

2020/12/15 测验: Final Exam

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1.2%

7.4%

4.3%

1 分问题 9

5%

4%

3%

6%

The market has a 8 percent expected rate of return and the risk free rate is 3%. What is the market risk premium?

1 分问题 10

8.50%

4.05%

5.75%

9.25%

The market has a 8 percent expected rate of return and the risk free rate is 3%. What is the required rate of return for NIKE using the CAPM?

1 分问题 11

2020/12/15 测验: Final Exam

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73%

23%

67%

51%

What is the weight of the debt as it relates to the firm's weighted average cost of capital?

1 分问题 12

49%

23%

75%

32%

What is the weight of the common stock as it relates to the firm's weighted average cost of capital?

1 分问题 13

5.19%

6.37%

9.12%

4.42%

Assuming that the market risk premium is 5% and the risk free rate is 3%. What is NIKE's weighted average cost of capital?

2020/12/15 测验: Final Exam

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1 分问题 14

74

10

93

2

NIKE's P/E ratio using 2020 earnings per share estimate and current stock price is closest to:

1 分问题 15

$51

$65

$93

$71

Companies in the Footwear & Accessories Industry trade at an average P/E ratio of 50. NIKE's implied share price using 2020 earnings per share estimate is closest to?

1 分问题 16

$5,370 million

What is the FCFF in 2021 if the marginal tax rate is 21%?

2020/12/15 测验: Final Exam

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$3,236 million

$2,520 million

$9,705 million

1 分问题 17

$7,113 million

$9,705 million

$5,370 million

$2,520 million

What is the FCFF in 2024 if the marginal tax rate is 21%?

1 分问题 18

$24,006 million

$54,564 million

$43,290 million

$35,693 million

What is the present value of the discrete period FCFF?

1 分问题 19

What is the FCFF terminal value in year 2025 if the long term growth rate is estimated to be 3%?

2020/12/15 测验: Final Exam

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$130,453 million

$423,569 million

$329,564 million

$265,770 million

1 分问题 20

$195,164 million

$130,596 million

$342,542 million

$526,854 million

What is the present value of the FCFF terminal value?

1 分问题 21

$526,456 million

$33,093 million

$219,170 million

$322,203 million

What is the company value using the FCFF model?

1 分问题 22

2020/12/15 测验: Final Exam

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$209,764 million

$132,203 million

$434,386 million

$318,362 million

What is the equity value if the market value of debt is $9,406 million?

1 分问题 23

$134.64

$310.32

$64.38

$112.64

What is the value of NIKE’s shares using the FCFF model if the company has 1,558 million shares outstanding?

1 分问题 24

$5,761 million

$49 million

$1,795 million

$2,720 million

The FCFE in 2021 is closest to?

2020/12/15 测验: Final Exam

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1 分问题 25

$26,974 million

$17,674 million

$55,693 million

$34,564 million

What is the present value of the discrete period FCFE?

1 分问题 26

$230,453 million

$243,569 million

$329,564 million

$152,472 million

What is the FCFE terminal value in year 2025 if the long term growth rate in FCFE is assumed to be 3%?

1 分问题 27

$326,854 million

$242,542 million

$101,401 million

$230,596 million

What is the present value of the FCFE terminal value?

2020/12/15 测验: Final Exam

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1 分问题 28

$119,075 million

$422,203 million

$326,456 million

$233,093 million

What is the equity value using the FCFE model?

1 分问题 29

$22.64

$164.38

$110.32

$76.43

What is the value of NIKE’s shares using the FCFE model if he company has 1,558 million shares outstanding?

1 分问题 30

$64.38

What is the value of NIKE’s shares using the Dividend Discount Model if the company has 1,558 million shares outstanding and the long term growth rate in dividends is expected to be 3%?

2020/12/15 测验: Final Exam

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$22.07

$110.32

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