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Question 842  monetary policy, institution

Which Australian institution is in charge of monetary policy?

Question 843  monetary policy, institution, no explanation

The Australian central bank implements monetary policy by directly controlling which interest rate?

Question 989  PE ratio, Multiples valuation, no explanation

A firm has 20 million shares, earnings (or net income) of $100 million per annum and a 60% debt-to-equity ratio where both the debt and asset values are market values rather than book values. Similar firms have a PE ratio of 12.

Which of the below statements is NOT correct based on a PE multiples valuation?

Question 990  Multiples valuation, EV to EBITDA ratio, no explanation

A firm has 2 million shares, expected EBITDA at the end of this year of $200 million per annum, $100 million in cash (not included in EV) and its market debt-to-assets ratio is 1/3. (market assets = EV + cash). Next year’s expected dividend yield is 4% pa, the expected dividend growth rate is 2% pa, next year’s expected payout ratio is 40% and the corporate tax rate is 30%. Dividends are paid annually.

Similar firms have an EV/EBITDA ratio of 10.

The stock can be valued using the EV/EBITDA multiple, dividend discount model, Gordon growth model or PE multiple.

Which of the below statements is NOT correct based on an EV/EBITDA multiple valuation?

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