Net Present Value and Cash Flow

e) Questioning is another method of sampling evidence and will involve the questioning of both the assessor and the candidate. To ensure that the evidence has the necessary validity the questions to the learner should happen in private away from the assessor. The need for the learner to feel that they have the confidence to disclose the true picture of the assessment process is very important. The question sessions can be recorded on the necessary portfolio documentation but can add validity if they are recorded on tape or digitally and used as evidence.

[All Answers must be submitted in the form at the end of this test. No Exception]

Three examinations will be administered. The exams will consist of multiple choice questions and problems. Problems will be similar to those covered in class or those given as homework assignments.

On exam day, students will have to be prepared with a comprehensive knowledge of their chosen topics. Faculty members will ask their chosen questions of the student and, with only a whiteboard or computer projector in front of them, students will have to orally work through the program and present their answer to the panel. If the student presents a satisfactory answer to each question, they pass the

Suppose Ace, over the last few years, has had an 18 percent average return on equity (ROE) and has paid out 20 percent of its net income as dividends. Under what conditions could this information be used to help estimate the firm’s expected future growth rate, g? Estimate ks using this procedure for determining g.

Copyright 2006 The Society of Management Accountants of Canada All rights reserved. No part of this manual may be reproduced in any form without the permission of the copyright holder.

This practice exam consists of 30 multiple choice questions on 11 pages (including this cover page).

This exam has 5 short questions and would be 30% of your final examination grade.

Your required rate of return is 9 percent. Ignoring taxes, what is the value of one share of this stock today?

EPS Growth Rate: These values are also found in exhibit 6, leading to g = 5.55%

Dividends were assumed to grow at the geometric average of the last 6 years, 20.28%. P0 = D2 Dn Pn D1 + + ··· + + 1 2 n (1 + Ke ) (1 + Ke ) (1 + Ke ) (1 + Ke )n $1.58 $2.28 $87.31 $1.31 + + ··· + + = 1 2 4 (1 + 7.0%) (1 + 7.0%) (1 + 7.0%) (1 + 7.0%)4 = $72.53

It cannot be used with binary variables (those taking on a value of 0 or 1)

Following are multiple choice questions recently released by the AICPA. These questions were released by the AICPA with letter answers only. Our editorial board is currently working on providing detailed explanations for these questions, so please check back to the Becker Knowledgebase soon for the updated file. Please note that the AICPA generally releases questions that it does NOT intend to use again. These questions and content may or may not be representative of questions you may see on any upcoming exams.

What are the expected dividend yield and capital gains yield during the fourth year (from Year 3 to Year 4)?

By submitting this coversheet and case, I acknowledge that I have not given nor received any assistance on this assignment. If I used an editor the editor did not comment on the content, i.e., issues, analysis or recommendations