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What is the implied growth duration of Freed Industries given the following?
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S&P Industrials |
Freed Industries |
|
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P/E Ratios |
19 |
22 |
|
Average Growth (%) |
11.0 |
16.0 |
|
Dividend Yield |
.033 |
.08 |
|
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- P/E ratios Expected growth Dividend yield years S&P Industrials 15.00 0.08 0.04 Kayleigh Industries 21.00 0.13 0.02 What is the implied growth duration of Kayleigh Industries, given the information provided above. Do not round intermediate calculations. Round your answer to two decimal places.What is the implied growth duration of Bowe Industries given the following: S&P Industrials Bowe Industries P/E Ratios 15 25 Average Growth (%) 5.0 15.0 Dividend Yield .06 .02 a. 3.2 years b. 6.6 years c. 8.6 years d. 9.7 years e. 10.6 years3.62 P/E ratios Expected growth Dividend yield years S&P Industrials 16.00 0.08 0.05 What is the implied growth duration of Kayleigh Industries, given the information provided above. Do not round intermediate calculations. Round your answer to two decimal places. Kayleigh Industries 22.00 0.15 0.01
- Assume the following ratios are constant. Total asset turnover 1.49 Profit margin 8.7% Equity multiplier 1.6 Payout ratio 55% What is the sustainable growth rate?Determining PB Ratio for Companies with Different Returns and Growth Assume that the present value of expected ROPI follows a perpetuity with growth g (Value = Amount/ [r - g]). Determine the theoretically correct PB ratio for each of the following companies A and B. Note: NOPAT = NOA » RNOA. Company Net Operating Assets Equity RNOA ROE Weighted Avg. Cost of Capital Growth Rate in ROPI $100 $100 19% 19% 10% 2% $100 $100 12% 12% 10% 4% A B Round answers to two decimal places. PB Ratio Company A Company BAssume the following ratios are constant: Total asset turnover Profit margin Equity multiplier Payout ratio 2.5 6.5% 1.6 20% What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
- Problem 9-09 S&P Industrials 17.00 0.08 0.05 years Kayleigh Industries 25.00 0.12 0.02 P/E ratios Expected growth Dividend yield What is the implied growth duration of Kayleigh Industries, given the information provided above. Do not round intermediate calculations. Round yoSuppose the Earnings Multiple of the comparable firms is 10.5 and the next year projected net income of Firm X is $990 million, what is the terminal value for Firm X based on the earnings multiple approach? O a. $9812 O b. $10395 O c. $12945 O d. $12815Return on Capital Employed (ROCE) = For Riccarton PLC: ROCE = 50000/380000 X 100 = 13.2% For Edinburgh PLC: ROCE = 45000/230000 X 100 = 19.6% Current Ratio = Current assets/current liabilities For Riccarton PLC: Current ratio = 150/120 = 1.25 For Edinburgh PLC: Current ratio = 80/70 = 1.14 Gearing Ratio = (long term borrowing + short term borrowings) / equity For Riccarton PLC: Gearing ratio = (180 + 100)/200 = 1.4 For Edinburgh PLC: Gearing ratio = (100 + 50)/130 = 1.15 Price/Earnings (P/E) Ratio = Share price / earnings per share For Riccarton PLC: P/E Ratio = 195/35 =5.57 For Edinburgh PLC: P/E Ratio = 451/28 = 16.107 Based on the above ratios explain, which company George H. and James W. should invest in. You should also briefly discuss the limitations of your analysis.
- Based on the information in the table, what is the growth duration for Georgia Gauge? Report your answer rounded to one decimal place. P/E Ratio Expected Growth Rate Dividend Yield Answer: S&P Industrials Georgia Gauge, Inc. 25 0.16 0.02 16 0.05 0.04Financial leverage MicrosoCortrepotied (MSFT) reported the following data (in millions) for a tern year Compute the profit margin, asset turnover, and financial leverage metrics using the expandedDuPont formula. Round profit margin, asset turnover, and financial leverage to two decimalplaces.Round return on stockholders’ equity to one decimal place.Assume the following ratios are constant: Profit margin Total asset turnover 2.5 5.2% Equity multiplier 1.3 Payout ratio 22% What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., Answer is complete but not entirely correct. Sustainable growth rate 1.09 %
