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QUESTION 1

Which of the following is not used as a multiple for corporate valuations?

Select one:

EBITDA

Price-Earnings Ratio

Long-term assets

Revenue

QUESTION 2

An investor is considering the acquisition of 100% of the shares of the Mountain Star Hotel. The following financial information is available for the target:

revenue 2020	2.500.000 euro
EBITDA 2020	1,250.000 euro
net financial debt	500.000 euro

The following information is available for three listed competitors:

KPI	ALPHA HOTEL	BETA HOTEL	GAMA HOTEL
REVENUE MULTIPLE	1x	1.5x	2.0x
EBITDA MULTIPLE	5x	4x	6x

Which enterprise value (based on 100% of the shares) can be determined for the Mountain Star Hotel based on an average EBITDA multiple?

Select one:

3,25 Mio. EUR

6,25 Mio. EUR

5,75 Mio. EUR

3,75 Mio. EUR

QUESTION 3

he following is extracted from Dells balance sheet at January 31, 2003.

	IN USD MILLIONS
NET FINANCIAL ASSETS	9,167
COMMON EQUITY(2,579MILLIONS SHARES OUTSTANDING	4,873

Analysts are forecasting consensus earnings per share of $1.01 for the year ending January 31, 2004. Net financial assets are expected to earn an after-tax return of 4% in 2004. What is the forecast of operating income implicit in the analysts earnings per share forecast?

Select one:

$2,624 million

$2,605 million

$2,972 million

QUESTION 4

t the end of the fiscal year ending June 30, 2003, Microsoft reported common equity of $64.9 billion on its balance sheet, with $49.0 billion invested in financial assets (in the form of cash equivalents and short term investments) and no financing debt. For the fiscal year 2004, the firm reported $7.4 billion in comprehensive income, of which $1.1 billion was after-tax earnings on the financial assets. This month Microsoft is distributing $34 billion of financial assets to shareholders in the form of a special dividend.

Calculate Microsofts return on common equity (ROCE) for 2004.

Select one:

9.7%

none of these answers

1.69%

11.4%

QUESTION 5

At the end of the fiscal year ending June 30, 2003, Microsoft reported common equity of $64.9 billion on its balance sheet, with $49.0 billion invested in financial assets (in the form of cash equivalents and short term investments) and no financing debt. For the fiscal year 2004, the firm reported $7.4 billion in comprehensive income, of which $1.1 billion was after-tax earnings on the financial assets. This month Microsoft is distributing $34 billion of financial assets to shareholders in the form of a special dividend.

What effect would you expect the dividend payout to have on the value of Microsoft shares?

Select one:

There is not enough information provided to make a prediction.

It will decrease the value of shares.

It will have no effect on share value.

It will increase the value of the shares

$2,238 million

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