As a health care analyst, you are valuing the stocks of Hasbro Inc. (NYS HAS) in March 2013. Based on an average of estimates obtained from capital asset pricing model (CAPM) and bond yield plus risk premium approaches, you estimate that HAS's required rate of return is 9 percen You have gathered the data from HAS's 2012 annual report (amounts in millions of dollar). Although sales growth picked up in 2012, it has slowed considerably in recent years and you are concerned that trend will ultimately be reflected in profit margins. Given this consideration, you make the following long-term forecasts: Profit margin = 9.0 percen Dividend payout ratio = 35.0 percent Earnings growth rate = 7.0 percer Based on these data, what is HAS's justified P/S? 1700

As a health care analyst, you are valuing the stocks of Hasbro Inc. (NYS HAS) in March 2013. Based on an average of estimates obtained from capital asset pricing model (CAPM) and bond yield plus risk premium approaches, you estimate that HAS's required rate of return is 9 percen You have gathered the data from HAS's 2012 annual report (amounts in millions of dollar). Although sales growth picked up in 2012, it has slowed considerably in recent years and you are concerned that trend will ultimately be reflected in profit margins. Given this consideration, you make the following long-term forecasts: Profit margin = 9.0 percen Dividend payout ratio = 35.0 percent Earnings growth rate = 7.0 percer Based on these data, what is HAS's justified P/S? 1700

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter11: Investment Planning

Section: Chapter Questions

Problem 7FPE: Using the Value Line Investment Survey report in Exhibit 11.5, find the following information for...

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