NO.PZ2023032701000076
问题如下:
Exhibit 1 Cratt Ltd. Press Release Core EPS Announcement
We are pleased to report an increase in Core EPS from $1.01 to $1.31 for the year-ended 31 December 2017. The company continues to pursue its growth-by- acquisition strategy, acquiring smaller specialty companies in the pet supplies industry. Acquisitions over the past two years have allowed us to increase our asset base by 20%, and we expect similar opportunities for growth in the next few years.
Zhang notes that Cratt is currently trading at $11.31 and reminds the club that the company had been sued over patent infringement for producing coats and blankets for dogs with the names and logos of local professional sports teams on them without the teams’ permission. The company had settled quickly out of court to avoid further negative publicity. Zhang believes the company will not be incurring legal fees again in the foreseeable future but believes that because the company’s strategy is to grow by acquisition, costs related to acquisitions will continue to be incurred and are relevant in any analysis. She does not agree with the company’s exclusion of those costs from core EPS. She calculates Cratt’s trailing price-to-earnings ratio (P/E) on the basis of her beliefs.
Based on Exhibit 1 and Zhang’s beliefs about recurring costs, her trailing P/E is closest to:
选项:
A.10.98
B.10.01
C.8.64
解释:
Zhang believes that the acquisition costs will continue to be incurred and, therefore, should not be excluded from Cratt’s core EPS; however, the legal costs are non-recurring and should be excluded.
Using that definition, recurring EPS in 2017 = $1.03 + 0.10 = $1.13. Trailing P/E = $11.31 ÷ $1.13 = 10.01.
A is incorrect. It uses the GAAP (reported) EPS: P/E = $11.31 ÷ 1.03 = $10.98. But that includes the legal fees, which Zhang believes will not recur and should not be included.
C is incorrect because it uses core EPS as reported by Cratt: P/E = $11.31 ÷ 1.31 = $8.64, which excludes the acquisition costs.
Zhang believes the company will not be incurring legal fees again in the foreseeable future but believes that because the company’s strategy is to grow by acquisition, costs related to acquisitions will continue to be incurred and are relevant in any analysis. She does not agree with the company’s exclusion of those costs from core EPS.
第一句说了Zhang认为法律费用不是持续的,最后一句又说Zhang不同意把“those costs”剔除。答案中“those costs”指的只是并购费用,但从文字来看感觉有歧义,即“those costs”理解为即使法律费用不可持续,但Zhang仍然认为不应该剔除。