Completion Status From the initial total value of $161.85, change the terminal growth rate to 2% What happens to the value of the stock? $157.63 $122.94 $100.57 $195.77 QUESTION 2 points Leaving the terminal growth rate of 2%, change the growth rate (growth rate from year 4 to year 10) in cell D11 to 8%. What is the new value fo the stock? $122.94 $149.41 $96.77 $167.89 QUESTION 3 4 points See A Leaving the terminal growth rate at 2% and the intermediate term growth rate at 8%, raise the third year earrings estimate to $12.50 What is the stock's new value? $188.44 $169.56 $103.22 $147.36 Ejah Ha Resume perfect Question Completion Status: QUESTION 4 What would an analyst working for Fidelity or the GE Pension fund be characterized as? Buy Side Sell Side QUESTION 5 Does the book think employees generally benefit from working at a company that maximizes the present value of long term free cash flow? No Yes The book sees it going both ways 4 points Save Answer 4 points Save Answer QUESTION 6 4 points Save Answer If a company has an ROIC on new investments that is lower than their cost of capital, does growth add to the firm's value? No. Yes It depends on the firm's dividend payout policy QUESTION 14 In the continuing value formula used in the terminal/mature/constant growth period, which of the three key variables is in the middle? O Return on Invested Capital Weighted Average Cost of Capital Growth rate (at maturity) QUESTION 15 Which conditions are worst for sustaining return on invested capital? A Fast Growing Market High Risk of Retaliation No Established Competition Strong Product Patents QUESTION 16 What is an ABOVE AVERAGE source of value creation? Making bolt-on acquisitions at high premiums Attracting New Customers to the Market Paying a high premium for a large acquisition Competitors can replicate and retaliate