Reference no: EM132675960
1.Last year sales for the S&P 500 were $1,700/share. If growth is expected to be 2.5%, operating margin 11.5%, interest expense 3% of sales, and tax rates 19%, what is the fair value of the S&P 500 if the RFR is 1% and market risk premium is 4%?
4925
4628
4813
4799
2.What is the fundamental P/E of the S&P 500 if growth is 3%, RFR is 2%, and market risk premium is 4%? The ROE is 10%.
25.1
21.5
23.3
27.2
3.What are the four areas that you want to cover when performing industry analysis?
urban, industrialization, capital intensive, risk free
cyclical impacts, structural impacts, industry life cycle, competitive forces
cyclical impacts, structural impacts, organic life cycle, natural forces
cyclicality, market structure, security design, duration
4.What are Porter's five forces?
forging ahead, stagnation, inflation, GDP growth
threat of competition, threat of monopolies, market concentration, market power
threat of new entrants, threat of substitutes, power of suppliers, power of buyers, competitive rivalry
divergence, consolidation, threat of takeover, threat of buyout