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NEW QUESTION: 1
An independent investment advisor is examining shares of Claypool Manufacturing, Inc. for possible investment. In her examination, this investment advisor has gathered the following information:
Market discount rate: 12.5% per year
Observed Price/Earnings ratio: 14.25
Given this information, what is the Franchise Price/Earnings ratio for Claypool Manufacturing?
A. The answer cannot be calculated from the information provided.
B. 6.25
C. None of these answers is correct.
D. 12.67
E. 16.28
F. 24.25
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The Franchise Factor method of value measurement is in many respects similar to EVA and MVA calculations. When examining a company using the franchise value approach, the observed price-to- earnings ratio is broken down into its two components - (1) the "base P/E," which is based on the Company's ongoing performance, and (2) a "franchise P/E" that is based on the expected value of new and profitable business opportunities. This relationship is illustrated as follows:
Franchise P/E = Observed P/E - Base P/E
Where the Base P/E equals the reciprocal of the market discount rate. For example, if the market discount rate is 12.5%, the base P/E would be equal to (1 / 12.5%) = 8.
In this example, all the necessary information has been provided, and the calculation of the Franchise P/E is as follows:
Franchise P/E = (14.25 - 8) = 6.25
NEW QUESTION: 2
Choose three of the following security mechanisms of Rational ClearQuest? (Choose three.)
A. action access control
B. permissions on queries
C. record form tab access rights
D. security context
E. role-based context menus
Answer: A,C,D
NEW QUESTION: 3
Which of the following are ways to create a message for a customer in SAP Solution Manager Service Desk during message processing? (Choose two)
A. Call transaction CRMD_ORDER.
B. The message processor has to call SE80.
C. Only a customer can create a message.
D. Within the transaction for message processing.
Answer: A,D
