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NEW QUESTION: 1
Yummy Doughnuts (YD) sells a variety of doughnuts and other related items through both company-owned locations and franchise locations. YD has experienced significant growth over the past five years.
However, barriers to entry are low and competition is increasing.
Linda Haas, CFA, follows YD for Gibraltar Capital. Gibraltar Capital prides itself on its thorough fundamental analysis of investment opportunities. The company uses a bottom-up approach to the investment process. Haas's security selection process utilizes residual income models to determine a stock's intrinsic value. Haas obtains YD's 2008 financial statements shown in Exhibit 1. In addition, Haas provides supporting information about YD's financials and other related material found in Exhibit 2.
Haas makes the following statements during her YD presentation to the investment committee.
Statement 1: Based on ROE mean reversion, YD's continuing residual income is assumed to decline to zero over time.
Statement 2: The residual income model states that if YD's ROE equals its equity cost of capital, then YD's intrinsic value will equal its book value per share.
Haas notes that the multi-stage residual equity income model captures more detail in calculating YD's intrinsic value. An assumption of the model is that ROE fades to the cost of equity over time, which is known as a persistence factor (varying from 0 to 1). Identify which characteristic indicates a higher persistence of abnormal earnings.
A. High dividend yield.
B. Low price to earnings ratio.
C. Low dividend payout.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
It is difficult for a company to maintain a high ROE because of competition. The persistence factor will be lower for those companies. A company that has a low dividend payout has greater growth opportunities than a company with a high dividend payout. The greater growth opportunities should support a higher persistence factor. (Study Session 13, LOS 43.J)
NEW QUESTION: 2
A. $ ("h1: first") .animate ({ opacity: 0 });
B. $("h1:first").fadeIn(1000);
C. $("h1:first").animate({ opacity: 1 });
D. $("h1:first").fadeOut(1000);
Answer: A,D
NEW QUESTION: 3
You need to implement a solution to meet the monitoring requirements for App1. Which template should you use?
A. Process Monitoring
B. TCP Port
C. Windows Service
D. Web Application Transaction Monitoring
Answer: D
Explanation:
Explanation:
"A Composite Solution With Just One Click" - Certification Guaranteed 28 Microsoft 70-246 Exam