Financial Statement Analysis and Security Valuation solution SOLUTIONS MANUAL 5e财务报表分析和证-券估值 第五版 答案.docx
![资源得分’ title=](/images/score_1.gif)
![资源得分’ title=](/images/score_1.gif)
![资源得分’ title=](/images/score_1.gif)
![资源得分’ title=](/images/score_1.gif)
![资源得分’ title=](/images/score_05.gif)
《Financial Statement Analysis and Security Valuation solution SOLUTIONS MANUAL 5e财务报表分析和证-券估值 第五版 答案.docx》由会员分享,可在线阅读,更多相关《Financial Statement Analysis and Security Valuation solution SOLUTIONS MANUAL 5e财务报表分析和证-券估值 第五版 答案.docx(1667页珍藏版)》请在得力文库 - 分享文档赚钱的网站上搜索。
1、SOLUTIONS TOEXERCISES AND CASESForFINANCIAL STATEMENT ANALYSIS AND SECURITYVALUATIONStephen H. PenmanFifth EditionCHAPTER ONEIntroduction to Investing and ValuationConcept Questions1C1.1.Fundamental risk arises from the inherent risk in the business from sales revenue falling or expenses rising unex
2、pectedly, for example. Price risk is the risk of prices deviating from fundamental value. Pricesare subject to fundamental risk, but can move away from fundamentalvalue, irrespective of outcomes in the fundamentals. When an investorbuys a stock, she takes on fundamental risk the stock price could dr
3、op because the firms operations dont meet expectations but she also runs the (price) risk of buying a stock that is overpriced or selling a stock thatis underpriced. Chapter 19 elaborates and Figure 19.5 (in Chapter 19)gives a display.C1.2.A beta technology measures the risk of an investment and the
4、required return that the risk requires. The capital asset pricing model (CAPM) is a beta technology; is measures risk (beta) and the requiredreturn for the beta. An alpha technology involves techniques thatidentify mispriced stocks that can earn a return in excess of the requiredreturn (an alpha ret
5、urn). See Box 1.1. The appendix to Chapter 3elaborates on beta technologies.2C1.3.This statement is based on a statistical average from the historicaldata: The return on stocks in the U.S. and many other countries duringthe twentieth century was higher than that for bonds, even though there were per
6、iods when bonds performed better than stocks. So, the argumentgoes, if one holds stocks long enough, one earns the higher return.However, it is dangerous making predictions from historical averageswhen risky investment is involved. Averages from the past are notguaranteed in the future. After all, t
7、he equity premium is a reward forrisk, and risk means that the investor can get hit (with no guarantee ofalways getting a higher return). The investor who holds stocks (forretirement, for example) may well find that her stocks have fallen when she comes to liquidate them. Indeed, for the past 5-year
8、 period, the past10-year period, and the past 25-year period up to 2010, bondsoutperformed stocksnot very pleasant for the post war baby-boomer atretirement age at that point who had held “stocks for the long run.”Waiting for the “long-run” may take a lot of time (and “in the long runwe are all dead
9、”).3The historical average return for equities is based on buying stocksat different times, and averages out “buying high” and “buying low”(and selling high and selling low). An investor who buys when prices arehigh (or is forced to sell when prices are low) may not receive thetypical average return
10、. Consider investors who purchased shares during the stock market bubble in the 1990s: They lost considerable amount oftheir retirement “nest egg” over the next few years. See Box 1.1.C1.4.A passive investor does not investigate the price at which he buysan investment. He assumes that the investment
11、 is fairly (efficiently)priced and that he will earn the normal return for the risk he takes on. The active investor investigates whether the investment is efficiently priced. He looks for mispriced investments that can earn a return inexcess of the normal return. See Box 1.1.C1.5.This is not an eas
12、y question at this stage. It will be answered in full as the book proceeds. But one way to think about it is as follows: If aninvestor expects to earn 10% on her investment in a stock, then4earnings/price should be 10% and price/earnings should be 10. Anyreturn above this would be considered “high”
13、and any return below it“low.” So a P/E of 33 (an E/P yield of 3.03%) would be considered high and a P/E of 8 (an E/P yield of 12.5%) would be considered low. But we would have to also consider how accounting rules measure earnings: If accounting measures result in lower earnings (through high deprec
14、iationcharges or the expensing of research and development expenditure, forexample) then a normal P/E ratio might be higher than 10. And one alsohas to consider growth: If earnings are expected to be higher in thefuture than current earnings, the E/P ratio should be lower than this 10% benchmark (an
15、d the corresponding P/E higher). In early 2012, the S&P500 P/E ratio stood at 14.4.C1.6.The firm has to repurchase the stock at the market price, so theshareholder will get the same price from the firm as from anotherinvestor. But one should be wary of trading with insiders (themanagement) who might
16、 have more information about the firmsprospects than outsiders (and might make stock repurchases when they5consider the stock to be underpriced). Some argue that stockrepurchases are indicative of good prospects for the firm that are notreflected in the market price, and firms repurchase stocks to s
17、ignal theseprospects. Firms buy stocks because they think the stock is cheap.C1.7. Yes. Stocks would be efficiently priced at the agreed fundamentalvalue and the market price would impound all the information thatinvestors are using. Stock prices would change as new informationarrived that revised t
18、he fundamental value. But that new informationwould be unpredictable beforehand. So changes in prices would also beunpredictable: stock prices would follow a “random walk.”C1.8.Index investors buy a market index-the S&P 500, say-at itscurrent price. With no one doing fundamental analysis, no one wou
19、ldhave any idea of the real worth of stocks. Prices would wanderaimlessly, like a “random walk.” A lone fundamental investor mighthave difficulty making money. He might discover that stocks aremispriced, but could not be sure that the price will ultimately return to“fundamental value.”6C1.9.a. If th
20、e market price, P, is efficient (in pricing intrinsic value) and V is a good measure of intrinsic value, the P/V ratio should be 1.0. The graph does show than the P/V ratio oscillates around 1.0 (at least up tothe bubble years). However, there are deviations from 1.0. Thesedeviations must either be
21、mispricing (in P) that ultimately gets correctedso the ratio returns to 1.0, or a poor measure of V.b. Yes, you would have done well up to 1995 if P/V is anindication of mispricing. When the P/V ratio drops below 1.0, pricesincrease (as the market returns to fundamental value), and when the P/Vratio
22、 rises above 1.0,prices decrease (as the market returns tofundamental value). A long position in the first case and a short position in the latter case would earned positive returns. Of course, this strategyis only as good as the V measure used to estimate intrinsic value.c. Clearly, shorting Dow st
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- Financial Statement Analysis and Security Valuation solution SOLUTIONS MANUAL ,5e财务报表分析和证-
![提示](https://www.deliwenku.com/images/bang_tan.gif)
链接地址:https://www.deliwenku.com/p-96178250.html
限制150内