Calculation of the implied growth duration of various

Assignment Help Finance Basics
Reference no: EM13356794

Calculation of the implied growth duration of various companies and decision making.

You are given the following information about two computer software firms and the S&P Industrials:

 

Company A

Company B

S P industrials

P/E ratios

30

27

18

Expected growth

0.18

0.15

0.07

Dividend yield

0

0.01

0.02

a). Compute the growth duration of each company stock relative to the S&P Industrials.

b). Compute the growth duration of Company A relative to Company B.

c). Given these growth durations, what determines your investment decision?

Reference no: EM13356794

Questions Cloud

Multiple choice questions on equity valuation and wacc1 : multiple choice questions on equity valuation and wacc.1. nbspnbspassume that mary brown inc. hired you as a consultant
Calculation of firms growth rate and capital gains yield at : calculation of firms growth rate and capital gains yield at given dividend options1.nbspnbsp investors receive a total
Calculation of current required return on the stock1 stock : calculation of current required return on the stock.1 stock at abc co sold last year at 48per share and dividends paid
Calculation of the implied growth duration of various : calculation of the implied growth duration of various companies and decision making.you are given the following
Calculation of the implied growth duration of various : calculation of the implied growth duration of various companies and decision making.you are given the following
Calculation of the implied growth duration of company by : calculation of the implied growth duration of company by using various parameters.1. what is the implied growth
Stocks coefficient of variation required rate return and : stocks coefficient of variation required rate return and risk analysisstock x has a 10 expected return a beta
Stocks coefficient of variation required rate return and : stocks coefficient of variation required rate return and risk analysisstock x has a 10 expected return a beta
Various methods of stock valuation theory and dividend : various methods of stock valuation theory and dividend policies.1. stock valuation why does the value of a share of

Reviews

Write a Review

Finance Basics Questions & Answers

  Briefly discuss the irs s position

John forms a company and transfers property having a basis to him of $18,000 & a fair market value of $26,000 to the company for 1,000 shares of $10 par stock.

  Why is not the goal to maximize the future share price

Goal of Financial Management Why is the goal of financial management to maximize the current share price of the company's stock? In other words, why isn't the goal to maximize the future share price?

  Dividends are considered regular

dividends are considered regular and dividend is not likely to be repeated.

  What is the cash flow margin

Given that Good Health Clinic is a not-for-profit organization with 100% equity, what is the cash flow margin?

  How much money will be in the account at the end

How much in account 15 years later at age 55 if the account continues to earn 9.5% per year but you discontinued making new contributions?

  Entry to record the purchase

Fison Corporation purchased 15,000 shares of its $2 par common stock at a cost of $12 each share on April 30, 2006. The stock was originally issued at $10 each share.

  What are the expected cash receipts for march

If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?

  Estimate the market value of one share of charleston stock

A similar firm which is publicly traded had a price/earnings ratio of 5.0. Using only the information given, estimate the market value of one share of Charleston's stock.

  Distribution between dividend yield and capital gains

Two investors are estimating AT&T's stock for possible buy. They agree on the expected value of D and also on the expected future dividend increase rate.

  Finding mortgage rates

If mortgage rates increase from 5% to 10%, but the expected rate of increase in house prices increases from 2% to 9%, are people more or less likely to buy houses? ( Show your work to receive full credits).

  What are the firm''s market value capital structure weights

What are the firm's market value capital structure weights?

  Valuation techniques-mergers and acquisitions

What are some of the valuation techniques commonly used in Mergers and Acquisitions? Compare and contrast the valuation techniques common to Mergers and Acquisitions activities.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd