NO.PZ2022120703000066
问题如下：
Which of the following analyst adjustments would best account for a company's weak environmental management policy?
选项：
A.Apply an impairment charge on stranded assets B.Increase the P/E ratio used to determine the company's valuation C.Decrease the cost of capital used in a discounted cash flow model解释：
A is correct because "adjustments can be made directly to the balance sheet or capital expense lines.… A forecast ESG impairment event, e.g. a sub-standard factory, may result in an impairment charge being made to bring the company’s book value down." Stranded assets are "assets that are at risk of facing severe impairment because of regulatory or environmental change."
B is incorrect because the analyst should decrease the premium. "An investor may only be prepared to invest in a company with, for example, a 50% discount on a PE ratio versus an index benchmark because the company is judged to have a high ESG risk."
C is incorrect because the analyst should increase the cost of capital. "For example, a company’s environmental management processes and policies are judged strong or weak. After this judgment, the cost of capital used to discount cash flows in a DCF analysis is adjusted down or up by 1% to account for this.… A higher cost of capital would lead – all other factors being equal – to a lower intrinsic value estimate from the model."
他是前半句increase PE ratio的做法是对的，但是determine the company value这句话是不对应的对吗？因为在E的weakness代表，价值就会下降了。。。是因为这个吗？
