Maddy computer company using the earnings multiplies model

Assignment Help Management Information Sys

Reference no: EM1325705

Hwo much would you pay for Maddy Computer Company using the earnings multiplies model?

You have been reading about Maddy Computer Company (MCC), which currently retains 90 percent of its earning ($5 a share this year). It earns an ROE of almost 30 percent. Assuming a required rate of return of 14 percent, how much would you pay for MCC on the basis of the earnings multiplier model? Discuss your answer. What would you pay for Maddy Computer if its retention rate was 60 percent of its ROE was 19%?

Reference no: EM1325705

Questions Cloud

Explain henry assael model of buying decision behaviour : Explain Henry Assael Model of buying decision behaviour along with the diagram". Explain in 2 Pages total.

Suggestions for ensuring an adequate change control : What are two suggestions for ensuring the adequate change control on projects that involve outside contracts.

Cross-culture gender perspective : What can you say about the roles and relative power of men and women in families and households?

Explaining the patient protection and affordable care act : How do you think the court will hold on these issues, and why do you think the court will hold this way?

Maddy computer company using the earnings multiplies model : Hwo much would you pay for Maddy Computer Company using the earnings multiplies model - What would you pay for Maddy Computer if its retention rate was 60 percent of its ROE was 19%?

Motivational techniques in western-russian joint ventures : What are the conflicting motivational techniques in Western-Russian joint ventures?

Explain e-commerce security and privacy : Explain E-commerce Security and Privacy- Education on Security Concerns and why are so many business and government and military transactions processed online

Professional values and ethics : Write down a response in which you explain the relationship among professional values, ethics, and career success. Address the following items in your explanation:

What sorts of measures would you recommend : What sorts of measures would you recommend for minimizing changes to project schedules caused by non-availability of required human resources, or conflicts with the personal plans of project workers (e.g. vacations).

User Account

All Pages