User Account

All Pages

Define the price earnings ratio

Assignment Help Finance Basics
Reference no: EM132642029

Use the information in the following table to answer the questions that follow:

Dividend yield PE (price to earnings) PB (price to book)

Country (2009 vs 2018) ratio (2009 vs 2018) ratio (2009 vs 2018)

China 3.5% vs 2.0% 9.2x vs 14.7x 1.6x vs 1.9x

Germany 6.3% vs 2.8% 7.6x vs 16.0x 1.0x vs 1.8x

Japan 2.9% vs 2.1% 10.6x vs 14.1x 0.9x vs 1.4x

UK 6.0% vs 4.0% 6.4x vs 17.2x 1.2x vs 1.8x

US 3.3% vs 1.9% 11.8x vs 23.1x 1.5x vs 3.4x

1. Define dividend yield and explain how it can be used in investment decisions, referring to the information in the table

2. Define the price earnings ratio and explain how it can be used in investment decisions, referring to the information in the table

3. Define the price to book value and explain how it can be used in investment decisions, referring to the information in the table

4. Based on the ratios in the table, is it possible to say that the shares in any of the countries are undervalued? Motivate your answer

Reference no: EM132642029

Questions Cloud

Discuss complementary therapies evident in given situation : What cultural and spiritual issues are evident in this situation? Discuss complementary therapies evident in this situation. How would you incorporate spiritual
Difference between relative valuation-discounted cash flow : Explain the difference between relative valuation (multiple-based valuation methods) and discounted cash flow and name a specific example of each of the two met
Construct chelsea clinic operating budget : Chelsea Clinic projected, Construct Chelsea Clinic's operating budget for 2021, including projections for volume, revenues, costs, and a P&L statement
What impact do you think cointelpro : What impact do you think COINTELPRO had on evolution of U.S. counterintelligence? Explain. Do you feel were completely necessary to ensure national security?
Define the price earnings ratio : Define the price earnings ratio and explain how it can be used in investment decisions, referring to the information in the table
Explain what moral relativism is : Speak with a friend, fellow worker, or family member about today's moral values. Do they think we have a problem with moral decay today and what examples.
Find amount of financing needed by sabaq corporation : Gadget Corporation wants to determine the additional funds needed for its forecasted sales in the coming year. The forecasted financial information are as follo
Developing a leadership growth plan : Developing a Leadership Growth Plan - you will continue to develop your LGP by setting goals and conducting an assessment of resources you will need
Calculate pay back period and average rate of return : The duration of project is 6 (six) years and salvage value is Tk. 6,000. The company uses straight-line method of depreciation. The company tax rate is 40%.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is pickett''s tie ratio

If the company does not maintain a TIE ratio of at least 5 times, its bank will refuse to renew the loan, and bankruptcy will result. What is Pickett's TIE ratio?

  Determination of apr and apy

A bank loan contract calls for an interest rate equal to prime rate plus 1%. If prime rate averages 9% and non-interest-earning compensating balances equal to 10 percent.

  What is the maximum you can pay for a home

Based on the traditional housing expense ratio of 28%, what is the maximum you can pay for a home, based on an LTV of 80%?

  Advantages and disadvantages of a stable dividend policy

What are the advantages and disadvantages of a stable dividend policy?

  Personal risk management process

Next, provide an example of how each step would be applied to your personal risk management process.

  Receipts and payments account and a cash budget

The club Treasurer prepares a Receipts and Payments Account and a Cash Budget. Suggest 2 other financial statements that could be prepared and explain the information they would provide to members.

  Investing money in a bank account

You are currently investing your money in a bank account which has a nominal annual rate of 8 percent, compounded monthly.

  Which economy have a steeper aggregate expenditure curve

How would the dynamic aggregate demand curves differ given that the monetary policy reaction curve is the same in both countries?

  Effective intercultural communication

When doing business in other cultures, what are some strategies you can use to promote effective intercultural communication?

  What is group cohesion

What is group cohesion? What factors contribute to group cohesion? How can you enhance group cohesion?

  What is the yield to maturity

What is the yield to maturity of a 9.8% semiannual coupon bond with a face value of? $1,000 selling for $888.70 that matures in 11 years?

  What would be the new price of the bond

Compute the price of the bond (100=par) as of July 1, 2014 if the market requires a yield to maturity of 3.10%. If the market were to suddenly require the yield to rise to 3.50%, what would be the new price of the bond?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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