FACULTAD DE CIENCIAS EMPRESARIALES Y ECONÓMICAS

PERÍODO ACADÉMICO: 2022-2

DOCENTE RESPONSABLE: PAUL ZEVALLOS OLIVOS

CÓDIGO / ALUMNO:
- 20173461 / ALVARO MARCEL HOSTILIANO VERA
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SECCIÓN: 1051 FECHA DE ENTREGA: 15 de noviembre de 2022

GESTIÓN DE INVERSIONES II
EVALUACIÓN CONTINUA 2 (EC2)
EXAMEN ESCRITO Nº 05 (Grupal)

Instrucciones:
 En cada pregunta debe indicar la alternativa seleccionada, así como la justificación de su respuesta.
 En la calificación se tomará en cuenta el orden, redacción y claridad en la escritura de la
justificación.
 La práctica está conformada por 40 preguntas y se calificará sobre 20 puntos:
 Puntaje por pregunta correcta: 0.25 puntos
 Puntaje por justificación correcta: 0.25 puntos
 Puntaje por pregunta incorrecta/en blanco: 0 puntos

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HOJA DE RESPUESTAS:

# Question Answer # Question Answer

1 21
2 22
3 23
4 24
5 25
6 26
7 27
8 28
9 29
10 30
11 C 31
12 A 32
13 A 33
14 C 34
15 B 35
16 B 36
17 C 37
18 C 38
19 C 39
20 C 40

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PREGUNTAS:

01 A stock paid dividend $3.0 last year and the expected annual dividends for the next two
years are $3.4 and $4.0 respectively and at the end of 2-years, stock price is expected to
be $50. If required rate of return for the stock is 12%, then the estimated value of the stock
is closest to:

A 47.
B 50.
C 57.

Justificación:

02 Blue Wick Products Incorporated (BWPI) is a firm that has a successful track record of over
ten years. The firm has never paid a dividend but, given its success, expects to do so after
five years. The dividend then is estimated to equal $7.06/share and is expected to grow at
a rate of 4.0% thereafter. The firm has also issued long-term bonds and their current
market yield equals 6.5%.

If an appropriate risk-premium for the firm’s equity equals 7.5%, the intrinsic value of
BWPI’s stock will be closest to:

A $ 41.80
B $ 45.11
C $ 119.43

Justificación:

03 An analyst makes the following statement: “Use of P/E and other multiples for analysis is
not effective because the multiples are based on historical data and because not all
companies have positive accounting earnings.” The analyst’s statement is most likely:

A Inaccurate with respect to both historical data and earnings.

B Accurate with respect to historical data and inaccurate with respect to earnings.
C Inaccurate with respect to historical data and accurate with respect to earnings.

Justificación:

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04 A company's payout ratio is 0.45 and its expected return on equity (ROE) is 23%. What is
the company's implied growth rate in dividends?

A 4.16%.
B 10.35%.
C 12.65%.

Justificación:

05 A firm will not pay dividends until four years from now. Starting in year four dividends will be
$2.20 per share, the retention ratio will be 40%, and ROE will be 15%. If k = 10%, what
should be the value of the stock?

A $41.32.
B $58.89.
C $55.25.

Justificación:

06 An investor is considering acquiring a common stock that he would like to hold for one year.
He expects to receive both $1.50 in dividends and $26 from the sale of the stock at the end
of the year. What is the maximum price he should pay for the stock today to earn a 15
percent return?

A $24.11.
B $23.91.
C $27.30.

Justificación:

07 An analyst gathers the following information on a company that is expected to experience

high dividend growth for 4 years followed by long-term, constant growth:

Current market price of stock £66.10

Current dividend £2.00
Annual dividend growth rate, Years 1–4 10%
Annual dividend growth rate, Years 5+ 3%

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 Using only this data for a two-stage dividend discount model, the analyst's most
A Undervalued.
B Fairly valued.
C Overvalued.

Justificación:

08 An analyst gathers the following information about the stock of a company and its industry:

The company's justified forward price-to-earnings (P/E) ratio is the same as the industry
average. The company's dividend payout ratio is closest to:

A 40%.
B 60%.
C 80%.

Justificación:

09 An analyst has compiled the following information about a company stock:

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 A Undervalued.
B Fairly valued.
C Overvalued.

Justificación:

10 An analyst gathers or estimates the following information about a stock:

Current price per share $ 22.56

Current annual dividend per share $ 1.60
Annual dividend growth rate for Years 1 – 4 9.00%
Annual dividend growth rate for Years 5 + 4.00%
Required rate of return 12%

Based on a dividend discount model, the stock is most likely:

A Undervalued.
B Fairly valued.
C Overvalued.

Justificación:

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11 Company management has announced an annual dividend of $6.50 per share for the
upcoming year. The dividends are forecasted to grow at a rate of 3% in perpetuity while the
company’s required return on equity is 8%. The company’s return on equity in the current
year was 12%.

The intrinsic value of the company stock is closest to:

A $ 72.22
B $ 130.00
C $ 133.90

Justificación: RESPUESTA C

VI= (6.5*(1+0.03)) / (0.08-0.03)

VI=133.9

12 A stock has a required return of 14% percent, a constant growth rate of 5% and a retention
rate of 60%. The firm's P/E ratio should be:

A 4.44.
B 5.55.
C 6.66.

Justificación: RESPUESTA A

P/E= (1-60%) / (14%-5%) = 4.44

13 Which of the following is least likely a macroeconomic influence that affects an industry’s
growth? Changes in:

A technologies.
B interest rates.
C inflation.

Justificación: RESPUESTA A. La inflación y tasas de interés son factores que

posiblemente sean más afectados que la tecnología por alguna influencia
macroeconómica.

14 According to statistical approaches, companies are grouped based on their:

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 A principal business activities.
B relative sensitivities to the business cycle.
C historical correlations of securities’ returns.

Justificación: RESPUESTA C. A través de análisis de conglomerados se agrupan con

respecto a sus rentabilidades pasadas.

15 An industry tends to be more competitive when the industry:

A is not fragmented.
B has high fixed costs.
C sells differentiated products.

Justificación: RESPUESTA B. Cuando hay altos costos fijos y los productos no son
diferenciados, habrá mayor competitividad en una industria.

16 A cyclical company is most likely to:

A have low operating leverage.

B experience wider-than-average fluctuations in demand.
C sell relatively inexpensive products.

Justificación: RESPUESTA B. Las compañías cíclicas además pueden tener alta

demanda durante una expansión económica o lo contrario, pero siempre superando al
promedio en ganancias o pérdidas con respecto a las demás empresas no cíclicas.

17 A company that is sensitive to the business cycle would most likely:

A not have growth opportunities.

B experience below-average fluctuation in demand.
C sell products that customers can purchase at a later date if necessary.

Justificación: RESPUESTA C. La flexibilidad de los clientes en cuanto a cuándo

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 compran el producto hace que el producto sea más sensible al ciclo comercial.

18 Which of the following is least likely?

A A $1,000 par semiannual-pay bond carrying a coupon rate of 8% will pay the investor
$40 every 6 months.
B The bond indenture is held by a trustee, who is appointed by bondholders and owes a
fiduciary duty to bondholders.
C In a securitization, the loans made by the originator are assets of the SPV, while bonds
issued by the SPE represent its liabilities.

Justificación: RESPUESTA C. El SPV maneja sus propios activos y pasivos, no

representan el balance de la empresa originadora.

19 Which of the following bonds is least likely to offer investors protection against a rise in
market interest rates?

A Step-up bonds.
B Inverse floaters.
C Variable-rate notes.

Justificación: RESPUESTA C. La nota de tasa variable a diferencia de las otras no

ofrece protección contra el crecimiento de las tasas de interés.

20 A sovereign bond has a maturity of 15 years. The bond is best described as a:

A perpetual bond.
B pure discount bond.
C capital market security.

Justificación: RESPUESTA C. Capital market security tiene valor de vencimiento mayor

a un año.

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21 The legal contract that describes the form of the bond, the obligations of the issuer, and the
rights of the bondholders can be best described as a bond’s:

A covenant.
B indenture.
C debenture.

Justificación:

22 A bond that is characterized by a fixed periodic payment schedule that reduces the bond’s
outstanding principal amount to zero by the maturity date is best described as a:

A bullet bond.
B plain vanilla bond.
C fully amortized bond.

Justificación:

23 The provision that provides bondholders the right to sell the bond back to the issuer at a
predetermined price prior to the bond’s maturity date is referred to as:

A a put provision.
B a make-whole call provision.
C an original issue discount provision.

Justificación:

24 Which of the following provisions is a benefit to the issuer?

A Put provision.
B Call provision.
C Conversion provision.

Justificación:

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25 Clauses that specify the rights of the bondholders and any actions that the issuer is
obligated to perform or is prohibited from performing are:

A covenants.
B collaterals.
C credit enhancements.

Justificación:

26 The value of a 10-year zero-coupon bond with a par value of $1,000, yielding 9.6% on a
semiannual-bond basis, is closest to:

A $410.
B $390.
C $400.

Justificación:

27 A six-year, 4% annual coupon payment bond is first callable in four years. The current price
for the bond is 102 per 100 of par value. The bond is first callable at a price of 106 on the
coupon payment date in two years, callable at 104 in three years, and at par value on the
coupon payment dates thereafter. The yield-to-second-call is closest to:

A 4.55%
B 4.83%
C 5.11%

Justificación:

28 The yields-to-maturity on three-year and four-year zero-coupon bonds are 2.56% and
3.39% respectively, stated on a semiannual bond basis.

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 The implied one-year forward rate three years from now will be closest to:
A 2.95%
B 2.98%
C 5.90%

Justificación:

29 An investor purchases a 5-year, 4% annual coupon-paying bond current priced at 93.56 per
100 of par value. The exhibit below illustrates spot rate information for various maturities on
the spot rate curve.

Exhibit: Spot Rate Information

Maturity Spot Rate (%)
1 4.560
2 7.570
3 2.573
4 3.678

Based on the information provided, the five-year implied spot rate is closest to:

A 3.98%
B 4.72%
C 5.62%

Justificación:

30 Given the following spot rate curve:

Spot Rate:
1-yr zero = 9.50%
2-yr zero = 8.25%
3-yr zero = 8.00%
4-yr zero = 7.75%
5-yr zero = 7.75%

What will be the market price of a five-year, 9% annual coupon rate bond?

A $1,000.00.
B $1,047.68.
C $1,067.78.

Justificación:

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31 A 20-year, 8% semi-annual coupon, $1,000 par value bond is selling for $1,100. The bond
is callable in 4 years at $1,080. What is the bond's yield to call?

A 3.44.
B 6.87.
C 7.21.

Justificación:

32 A 20-year, 10% annual-pay bond has a par value of $1,000. What is the price of the bond if
it has a yield-to-maturity of 15%?

A $685.14.
B $687.03.
C $828.39.

Justificación:

33 An analyst observes a 5-year, 10% semiannual-pay bond. The face amount is £1,000. The
analyst believes that the yield-to-maturity on a semiannual bond basis should be 15%.
Based on this yield estimate, the price of this bond would be:

A £828.40.
B £1,189.53.
C £1,193.04.

Justificación:

34 A noncallable bond is currently trading at par. Its required yield-to-maturity (YTM) falls by

10 basis points (bps) and its new price is 101. If its YTM had instead increased by 10 bps,
which of the following would be the best estimate of its price?

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 A 98.35
B 98.95
C 99.20

Justificación:

35 An analyst gathers information for the following bonds:

If yield-to-maturity (YTM) increases by 100 basis points for all bonds, the exception to the
maturity effect most likely means, in terms of absolute percentage price change, that:

A Bond A’s change is higher than Bond D’s.

B Bond B’s change is higher than Bond E’s.
C Bond C’s change is higher than Bond F’s.

Justificación:

36 The following table shows the spot rates for Years 1 through 4:

If the rates are stated on an annual basis, the 2y1y implied forward rate is closest to:

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 A 4.25%
B 4.60%
C 4.95%

Justificación:

37 A 4%, annual-pay bond is currently priced at 105 per 100 of par value.  It has three years to
maturity and is callable at a price of 102.5 at the end of Year 1 and 100.5 at the end of Year
2. The yield-to-worst is the bond's:

A Yield to maturity.
B Yield to first call.
C Yield to second call.

Justificación:

38 A yield curve shows the relation between yields to maturity and:

A Prices for securities with various risk profiles.

B Times-to-maturity for securities with same risk profile.
C Prices for securities with same risk profile and same time to maturity.

Justificación:

39 An investor purchased two identical bonds, A and B, in different markets. Market discount
rate for bond A is expected to increase by 50 basis points and for bond B is expected to
decrease by 50 basis points. The percentage price change in absolute value will be:

A Greater for bond A.

B Greater for bond B.
C Same for bond A and B.

Justificación:

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40 Considering all three bonds are currently trading at par value:

Which bond will most likely experience the greatest percentage change in price if the
market discount rates for all three bonds increase by 100-basis points?

A Bond A.
B Bond B.
C Bond C.

Justificación:

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Fin del Examen Escrito Nº 05 (Grupal)

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