Question 1 5 pts The goal of fundamental analysts is to find securities with a positive present value of growth opportunities. with high market capitalisation rates. None of the listed choices is correct. All of the listed choices are correct. whose intrinsic value exceeds market price. Question 2 5 pts An investment in a stock is the current commitment of dollars over time to derive future payments to compensate the investor for: the time funds are committed the expected rate of inflation all of the listed choices the uncertainty of future payments none of the listed choices Question 3 5 pts Industry overcapacity and increased cost cutting characterise which stage of the industry life cycle. maturity phase growth phase decline phase pioneer phase none of the listed choices Question 4 5 pts David Lim is performing an equity valuation of a listed company. His results will be useful for: all of the listed choices selecting an index benchmark none of the listed choices technical analysis O communicating with analysts and investor Question 5 5 pts In an efficient market, one cannot make money security prices react quickly to new information security analysis will not enable investors to realise superior returns consistently security prices are seldom far above or below their justified levels security prices react quickly to new information, are seldom far above or below their justified levels, and security analysis will not enable investors to realise superior returns consistently Question 6 5 pts One of the problems with attempting to forecast stock market values is that the level of uncertainty surrounding the forecast will always be quite high. None of the listed choices is correct. the earnings multiplier approach can only be used at the firm level. dividend payout ratios are highly variable. there are no variables that seem to predict market return. Question 7 5 pts An appropriate valuation approach for a company which is going out of business would be to calculate its: O liquidation value residual income value none of the listed choices dividend discount model value all of the listed choices Question 8 5 pts Relative valuation models use all of the following multiple, except Price to operating cash flows Price to earnings per share Price to book value of equity PEG per share Price to sales per share