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NEW QUESTION: 1
Travis Smith, CFA, is chief economic strategist and market analyst for Nashville Capital Management. He is developing a forecast of the S&P 500 stock market index utilizing different approaches.
Using microeconomic analysis, Smith wants to value the S&P using a dividend discount model (DDM) valuation approach. The trailing recent 52-week dividend for the S&P 500 equaled $60. Used as a proxy for the nominal risk-free rate, Treasury rates are as follows:
* 3-month T-bill rate: 3.5%
* 30-year T-bond rate: 5.0%
Smith uses an equity market premium equal to 6%. His estimate for the long-term outlook for ROE is 11%, and the long-run earnings retention rate is estimated at 40%.
Smith also is forecasting the market trends using varied macroeconomic techniques. He believes that security prices reflect expectations about the general economy. During his monitoring and forecasting of the overall economy, Smith is evaluating cyclical indicators and the business cycle. Smith has focused his analysis on three indicators:
1. Index of industrial production.
2. Interest rate spread between 10-year T-bonds and the fed funds rate.
3. Stock prices.
Smith is particularly interested in using stock market trends to predict economic turning points.
In conducting his research, Smith has found that the business cycle appears to be in the slowdown phase.
In his capital markets forecasting activities, Smith looks at government policy, and attempts to predict business and consumer activity, along with foreign trade. Smith has determined that government policy has a significant influence on the business cycle, and he is trying to predict changes in government policy.
Smith predicts that the government fiscal policy will loosen and that the Federal Reserve monetary policy will tighten. Smith estimates the following variables:
* Short-term neutral interest rate: 3.5%
* Nominal GDP long-term growth rate trend: 4.25%
* Federal Reserve inflation target: 2.25%
Smith forecasts that inflation will increase to 3.0%, and nominal GDP will grow at a 1.5% rate.
Smith's supervisor, Rasheed Gupta, requests a valuation of the S&P500 using a free cash flow to equity (FCFE) model. Gupta makes the following statement:
"A valuation model that replaces dividends with free cash flow to equity is a good alternative to the DDM If
1 remember correctly, free cash flow to equity equals net income plus depreciation." Supervisor Gupta's recommendations for the calculation of FCFII will lead to a valuation of the S&P 500 that most likely is:
A. too low if capital expenditure is positive.
B. too low if change in working capital is positive.
C. too low if proceeds from new debt issues exceed principal debt repayments.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Gupta's definition of FCFE is wrong. The correct formula is: Net income plus Depreciation minus Change in Working Capital minus Capital Expenditure minus Principal Debt Repayments plus Proceeds from New Debt Issues. Gupta's formula will underestimate FCFE if proceeds from new debt issues exceed principal debt repayments. The other choices (A and B) will cause Gupta's formula to overestimate FCFE. (Study Session 7, LOS 24.c)

NEW QUESTION: 2
SAPマテリアル管理でアイテムまたはドキュメントをブロックする基準を含む構成要素はどれですか？
A. リリースステータス
B. リリースインジケーター
C. リリース戦略
D. リリースコード
Answer: C

NEW QUESTION: 3
Scenario: The network engineer is unable to access a specific SSL site through the NetScaler. While reviewing traces on the NetScaler, the network engineer noticed "Handshake" failures from the server.
These handshake failures could be the result of the virtual server __________. (Choose the correct option to complete the sentence.)
A. configured to demand client authentication
B. not allowing correct ciphers
C. only allowing TLS
D. not allowing SSLv3
Answer: B

NEW QUESTION: 4
Your network contains a single Active Directory domain. The domain contains a laptop named Compute1
that runs Windows 10. A user named User1 uses Computer1.
Computer1 connects to two shared printers named Printer1 and Printer2. Printer1 is located at the office
and Pnnter2 is located at the home of User1.
User1 frequently reports that when attempting to print, the default printer is set to Printer2.
You need to ensure that Printer1 is the default printer always.
What should you do?
A. Change the priority of Printer1 to 1.
B. Add Printer 2 to a home group.
C. Change the priority of Printer2 to 1.
D. Disable Let Windows manage my default printer.
Answer: B

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