NO.PZ201710200100000102
问题如下：
Gianna Peters is an investment analyst who focuses on dividend-paying stocks. Peters uses a discounted cash flow (DCF) approach to stock selection. She is meeting with her staff to evaluate portfolio holdings based on a bottom-up screening of stocks listed in the United State and Canada. Peters and her staff begin by reviewing the characteristics of the following portfolio candidates.
Company ABC
A Canadian company in the consumer staples sector with a required rate of return of 7.35%. Recent media reports suggest that ABC might be a takeover candidate . Peters and her team estimate that if the incumbent Canadian prime minister’s party retains its power, the company’s current annual dividend of C$0.65 per share will grow 12% a year for the next four years and then stabilize at a 3.5% growth rate a year indefinitely. However, if a new government takes office in Canada, then the team estimates that ABC will likely not experience the elevated 12% short-run growth because of new regulatory and tax changes, and instead will grow by 3.5% indefinitely.
Company XYZ
A mid-sized US company in the utilities sector with a required rate of return of 10%. Peters and her team believe that because of a recent restructuring, the company is unlikely to pay dividends for the next three years. However, the team expects XYZ to pay an annual dividend of US$1.72 per share beginning four years from now. Thereafter, the dividend is expected to grow indefinitely at 4% even though the current price implies a growth rate of 6% during this same period.
Company JZY
A large US company in the telecom sector with a required rate of return of 8%. The stock is currently trading at US$32.76 per share with an implied earnings growth rate of 5.3%. Peters believes that because JZY is mature and has a stable capital structure, the company will grow at its sustainable growth rate. Over the past 10 years, the company’s return on equity (ROE) has averaged 8.17% and its payout ratio has averaged 40%. Recently, the company paid an annual dividend of US$0.84 per share.
Peters asks a newly hired analyst, Kurt Thomas, to comment on the evaluation approach for these three stocks. Thomas makes the following statements:
statement1:A free cash flow valuation model would not be appropriate to evaluate Company ABC if the firm becomes a takeover candidate.
statement2: A dividend discount model cannot be applied to Company XYZ if dividends are suspended for a few years.
statement 3: A dividend discount model is suitable for evaluating the stock of Company JZY because of the historically consistent payout ratio.
Peters then asks the team to examine the growth opportunities of three Canadian stocks currently held in the portfolio. These stocks are listed in Exhibit 1. Peters believes that the stocks are fairly valued.
Peters then asks the team to examine the growth opportunities of three Canadian stocks currently held in the portfolio. These stocks are listed in Exhibit 1. Peters believes that the stocks are fairly valued.
2. Assuming the incumbent government retains office in Canada, Peters and her team estimate that the current value of Company ABC stock would be closest to:
选项：
A.
C$22.18.
B.
C$23.60.
C.
C$25.30.
解释：
B is correct.
The value of ABC stock can be computed as follows:
Given: Dividend (D0) = C$0.65, Return (r) = 7.35%, Short-term growth (gS) = 12% for 4 years, Long-term growth (gL) = 3.5% thereafter. Then:
D1 = D0(1 + gS)1 = 0.65(1.12) = C$0.7280
D2 = D0(1 + gS)2 = 0.65(1.12)2 = C$0.8154
D3 = D0(1 + gS)3 = 0.65(1.12)3 = C$0.9132
D4 = D0(1 + gS)4 = 0.65(1.12)4 = C$1.0228
P4 = [D4 (1 + gL)]/(r – gL) = [D4 (1.035)]/(0.0735 – 0.035) = C$27.4960.
V0 = D1/(1 + r)1 + …. + D4/(1 + r)4 + P4/(1 + r)4.
V0 = [0.7280/(1.0735)1] + [0.8154/(1.0735)2] +[ 0.9132/(1.0735)3] + [1.0228/(1.0735)4] + [27.4960/(1.0735)4]
= C$23.5984 (rounded to C$23.60).
为什么不用H-model解答呢
