Find its intrinsic value. it is it over or under valued

Assignment Help Financial Accounting
Reference no: EM133561131

Risk free rate = 0.016 Market rate = 0.136

1. The average P/E of Korn Ferry's major competitors is 15.57. If its current EPS is $4.40 and it's selling for $50.98 a share, is it over or under valued?

2. Korn Ferry's average P/E is 12.867. Find its intrinsic value. It is it over or under valued?

3. Korn Ferry's information is below. Use it and the Two-stage Growth Model to find itsintrinsic value. Forecast its cash flows for 2024 through 2027. Is it over or undervalued?

2023 2024 2025 2026 2027
Beta 1.15
Dividend $0.70
Growth rates 0.120 0.151 0.151

4. Affiliated Managers has a beta of 1.40 and a fixed dividend. If its current P/E is 5.8, is it over or under valued?

5. Korn Ferry has a variable dividend. Its beta is 1.15, its dividend payout ratio is 14%, and its growth rate is 9%. Its current P/E is 9.0. Is it over or under valued?

Reference no: EM133561131

Questions Cloud

Calculate the present value of the lawsuits : Calculate the present value of the lawsuits assuming a risk-free rate of 6% and cash flows occurring at the end of the year. (For calculation purposes
Describe jurisdiction of any texas administrative agency : Describing facts that may violate rules or statutes under the jurisdiction of any Texas (not federal) administrative agency;
What concepts seem to jump out at you as you review : What concepts seem to jump out at you as you review your inputs? For example, are your purchases of clothes based on your social status?
Analyze type of organizational structure at place of work : Analyze the type of organizational structure at your place of work. How does the structure influence mission, vision, philosophy, and values (evaluation).
Find its intrinsic value. it is it over or under valued : Its beta is 1.15, its dividend payout ratio is 14%, and its growth rate is 9%. Its current P/E is 9.0. Is it over or under valued
What will your mobile marketing campaign encompass : What will your mobile marketing campaign encompass? Recommend three to five mobile marketing tactics that you consider to be the most appropriate for
What are the most important factors when choosing : What lodging, duration, and price are most favored by this group? Are they more or less likely to have been to camp vs the total sample? Geography.
Were there any recommendations for practice that you thought : Were there any recommendations for practice that you thought could be implemented in your clinical practice tomorrow? Next week? Next year?
How many minutes per unit would be allowed for the facility : how many minutes per unit would be allowed for the facility to be able to meet customer demand?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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