Page 110 - THE CARIBBEAN ADVANCED PROFICIENCY EXAMINATIONS

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Items 33 - 34 refer to the following financial 35. Using the book value approach, what is
valuation methods. the value of Hodge Company in 2012?

(A) Income capitalization (A) $492 592
(B) Book value (balance sheet (B) $1 952 352
value) (C) $2 866 592
(C) Price earning (multiple earnings (D) $3 497 152
value)
(D) Discounted future earnings
(discounted cash flow) 36. What is the price earnings multiple of
Hodge Company in 2012?
In answering items 33-34, match each item with
one of the options above. Each option may be (A) 2
used once, more than once or not at all. (B) 8
(C) 10
33. Which valuation method may become (D) 12
subjective if the shares for a company
are NOT traded on the stock market?
37. The process of buying and selling via
the internet is called
34. Which method is NOT an income
valuation method? (A) E-commerce
E-marketing
(B)
(C) E-banking
(D) E-communication
Items 35–36 refer to the following information.

Hodge Company hired a financial analyst for the 38. Which of the following products are
company. The financial analyst was provided NOT suitable for online selling?
with the following financial data. (A) CDs
(B) Books
Balance Sheet 2012 2011 (C) Fresh vegetables
(D) Financial services
Current Assets $2 680 112 $1 926 802
Net Fixed Assets $817 040 $939 790
Total Assets $3 497 152 $2 866 592 39. Which of the following statements is
Current Liabilities $1 144 800 $1 650 568 NOT a feature of business ventures?
Long-term Debt $400 000 $723 432
Other Data (A) Ventures are sown.
No. of shares 250 000 100 000 (B) Ventures can be grown.
EPS $1.014 -$1.602 (C) Ventures are harvested.
DPS $0.220 $0.110 (D) Ventures can be exported.
Stock Price $12.17 $2.25

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02224010/SPEC 2013