NO.PZ201710200100000301
问题如下：
BJL Financial provides clients with professional investment management services that are tailored to the specific needs of each client. The firm’s portfolio manager, Angelique Kwaza, has called a meeting with the senior analyst, Samira Khan, to discuss the quarterly rebalancing of three client portfolios. The valuation model used in the analyses is the discounted dividend model.
· Client 1 has a portfolio with significant exposure to dividend-paying stocks.
· Client 2 is interested in including preferred stock in the portfolio.
· Client 3 has a growth-oriented equity-only portfolio.
Khan has identified two utilities (ABC and XYZ) for possible inclusion in Client 1’s portfolio, as shown in Exhibit 1. She uses a discount rate of 7% for both common stocks
Kwaza asks Khan to investigate the most appropriate models for valuing utility companies. She tells Khan about the following points mentioned in various research reports on the utilities sector.
· Report 1: A resurgence in domestic manufacturing activity will generate longterm growth in earnings and dividends that exceeds the cost of equity.
· Report 2: Share repurchases are expected to increase. The report expresses confidence in the forecasts regarding the magnitude and timing of these repurchases.
· Report 3: The report forecasts earnings growth of 4.5%. The key growth drivers are increases in population and business creation associated with stable GDP growth of 2.75%.
For Client 2’s portfolio, Khan has identified the non-callable perpetual preferred stocks of Standard Company and Main Company. The
· Standard Company’s preferred stock pays 2.75% on a par value of $100. Khan believes it to be fairly valued at a market price of $49.60.
· The perpetual preferred stock of Main Company has a par value of $50 per share and pays an annual dividend of 5.5%. Khan estimates a capitalization rate at 6%. The current market price of Main Company preferred stock is $42.
·
Finally, Khan has identified three stocks, shown in Exhibit 2, as likely candidates for Client 3’s portfolio.
1. Based on the Gordon growth model, the justified leading P/E for ABC stock is closest to:
选项：
A.17.1.
B.17.7.
C.20.0.
解释：
A is correct.
The justified leading P/E is calculated as
P0/E1=(1−b)/(r−g)
where b is the retention ratio, 1 – b is the dividend payout ratio, r is the discount rate, and g is the long-term growth rate.
ABC’s dividend payout rate, 1 – b, is given as 0.60. For Company ABC, the justified leading P/E is
P0/E1=(1−b)(r−g)=0.60/(0.07−0.035)≈17.1
