FIN 3120 Bloomberg Questions and Answers 100% Pass

FIN 3120 Bloomberg Questions and Answers 100% Pass a rise in which of the following inputs will increase an absolute valuation? a) number of shares b) beta c) earning estimates d) 10-year government bond yield c) earning estimates A wedding planning company has a high fixed cost base and a lot of debt. Who would you rather be? a) a shareholder in a booming economy b) a shareholder in a stagnant economy c) a bond holder in a booming economy d) a bond holder in a stagnant economy a) a shareholder in a booming economy Company X was expected to have earnings per share of the results, the company reported earnings per share of $0.83. What happened to the share price when the stock market opened? There isn't enough info to tell How do earnings yields differ from bond yields? the cash flow from equities can continue indefinitely while the cash flow from most bonds comes to an end how is enterprise value calculated? a)market cap + cash - debt b)market cap - cash + debt c) market cap + cash + debt b)market cap - cash + debt if the earnings per share of a company are $1 and the earnings yield is 2% what is the price per share? $50 What does the release of earnings announcements have in common with the release of economic indicators? a) Both are typically released on a quarterly basis. b) both are typically published by corporations c) both are estimated in advance by analysts c) both are estimated in advance by analysts what input do both absolute valuation and relative valuation typically require? a)long term forecasts b)short term forecasts c)historic revenue data d)historic earnings data b) short term forecasts what is a reason one discounts future cash flows as part of the absolute valuation process a) future profits are uncertain b)deflation makes future cash flows worthless c) investors prefer future payments to payments today a) future profits are uncertain what is one possible weakness of this peer approach to valuation? a) it is a very laborious approach to valuation b) the estimated growth can be dramatically wrong