IRM

• SAS (Statistical Analysis System) makes software that enables computers to run more efficiently
• SAS is still in its high-growth phase
• Financial highlights of SAS:

  • Retention rate = 93%
  • Return on Assets = 25%
  • DE ratio = 10%
  • Interest rate = 60%
  • Expected Growth rate = 25.10%
• Philip Morris was forced to cut prices on its Marlboro brand of cigarettes in early 2010 to combat loss of sales to generic competitors
• In 2009, Philip Morris had earnings before interest and taxes of P10 billion on sales of P60 billion
• Total assets of Philip Morris in 2009 were P30 billion
• Pre-interest profit margin is expected to decline to 9%
• Debt/equity ratio is expected to remain unchanged at 1.00
• Interest rate for Philip Morris will remain at 6.5%
• Philip Morris pays out 65% of its earnings as dividends
• Expected growth rate in earnings based on 2009 data is 13.48%
• Factors used in doing fundamental analysis using company data:

  • Market Share
  • Productivity
  • Rising Prices
  • Resources
• Parameter in conducting economic analysis:

  • Market discount
  • Volume
  • Business cycle
  • Price movement
• Exchange rate as a factor of fundamental analysis may result in:

  • Trade deficit and balance of payments
  • Trade deficit that leads to inflation
• Quantitative fundamental analysis involves:

  • Market share
  • Cash flow statement
  • Profit and Loss Statement
• When you buy a security with an options contract, you are purchasing a call option. Call option means:

  • Buy
• In a bar chart analysis, the left mark/tick on the central line represents:

  • Opening price of the stock
• In a graph analysis, when the price stock opens high and closes low, the market is:

  • Bearish
• The function of technical analysis is:

  • trading
• ABC Co. invested in corporate bond on February 01, 2023. Yield of the bond took 6 days or more to increase at least 10 basis points. The 10 bps means:

  • 0.10%
• Tool uses in doing technical analysis:

  • Cycle analysis
• The graph shows the buy and sell of shares of stocks. Which of the following statement/s is correct?

  • The resistance level is always above the current market price, best time to sell
• The graph shows the buy and sell of shares of stocks. Which of the following statement/s is correct?

  • The support level is always below the current market price, best time to buy
• You are estimating the price/earnings multiple to use to value SMDC, by looking at the average price/earnings multiple of comparable firms in the real estate business. The average P/E ratio is:

  • 31.98
• Main components of portfolio return:

  • Capital appreciation
• Phase in portfolio management:

  • Security analysis
• Type of unsystematic risk:

  • Business risk
• Portfolio process that determines what projects will be implemented, postponed or cancelled by considering priorities and resource constraints:

  • Selection
• Bundle of investment that includes every type of asset available in the financial market with each asset weighted in proportion to its total presence in the market:

  • Market portfolio
• Expected return for SMDC:

  • 8.67%
  • 6.67%
  • 2.00%
  • 10.67%
• Expected return for DMCI:

  • 12%
  • 2.4%
  • 2.0%
  • 22%