Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food business and lower its risks. It is examining three companies-a gourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following represents information about all the companies. Company Treynor Pie Company. Gourmet restaurant Baby food company Nutritional products company Treynor Pie Company Gourmet restaurant Correlation with Treynor Sales ($) millions) $148 Pie Company Baby food company Nutritional products company +1.0 +0.5 +0.4 -0.7 66 52 74 Coefficient of Variation Expected Earnings ($ millions) $10 6 4 5 a-1. Compute the coefficient of variation for each of the four companies. Note: Enter your answers in millions (e.g., $100,000 should be entered as "10"). Round your answers to 3 decimal places. Standard Deviation in Earnings ($) millions) $4.0 1.2 1.9 3.1 Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food business and lower its risks. It is examining three companies-a gourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following represents information about all the companies. Company Treynor Pie Company. Gourmet restaurant Baby food company Nutritional products company Treynor Pie Company Gourmet restaurant Correlation with Treynor Sales ($) millions) $148 Pie Company Baby food company Nutritional products company +1.0 +0.5 +0.4 -0.7 66 52 74 Coefficient of Variation Expected Earnings ($ millions) $10 6 4 5 a-1. Compute the coefficient of variation for each of the four companies. Note: Enter your answers in millions (e.g., $100,000 should be entered as "10"). Round your answers to 3 decimal places. Standard Deviation in Earnings ($) millions) $4.0 1.2 1.9 3.1
Expert Answer:
Answer rating: 100% (QA)
Coefficient of variation V can be calculated as Standard deviation Expected ... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Posted Date:
Students also viewed these finance questions
-
The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 5,200,000 2,436,000 1,000,000 Average Assets $ 29,000,000 20,300,000 19,800,000...
-
Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food business and lower its risks. It is examining three companiesa gourmet restaurant...
-
Gifford Western Wear makes blue jeans and cowboy shirts. It has seven manufacturing outlets in British Columbia and Alberta. It is seeking to diversify its business and lower its risk. It is...
-
Different theories about early childhood inform approaches to children's learning and development. Early childhood educators draw upon a range of perspectives in their work ..." (EYLF p.12)....
-
The price of DHM stock is $192 and the following call and put options are actively traded. You decide to analyze the following strategies: Buy the calls to buy the stock at $180 and $210 and sell the...
-
Indicate which of the following errors, each considered individually, would cause the trial balance totals to be unequal: a. A payment of $7,000 for equipment purchased was posted as a debit of $700...
-
3. YOU BE THE JUDGE WRITING PROBLEM Kuhn Farm Machinery, a European company, signed an agreement with Scottsdale Plaza Resort, of Arizona, to rent 190 guest rooms for its North American dealers'...
-
Activity-based costing The job costing system at Smith's Custom Framing has five indirect cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The...
-
McCurdy Co.'s Class Q bonds have a 12-year maturity, $1,000 par value, and a 8.5% coupon paid semiannually (4.25% each 6 months), and those bonds sell at their par value. McCurdy's Class P bonds have...
-
Heat is transferred from water to air through a brass wall (k = 54 W/(m K)). The addition of rectangular brass fins, 0.08 cm thick and 2.5 cm long, spaced 1.25 cm apart, is contemplated. Assuming a...
-
How fiscal policies work? A key feature in AD/AS model is that economy can deviate from its potential output in the short run and eventually it will move comparable to this level. The Potential...
-
The reciprocal of two less than a number is three times the reciprocal of the number. Find the number. Enter your answer as an integer or a reduced fraction. Do not use decimals.
-
1. Give an overview of what is meant by social marketing. 2. Briefly outline some issues of importance to critical marketers. 3. Describe the major components of a marketing strategy. How are these...
-
Provide only one (1) metabolite per plant of choice. You may refer to the sample table below. Chemical Compound Example Source Chemical Description caffeine coffee (beans) serves as a stimulating...
-
A firm expects to have earnings before depreciation and taxes of $150,000 in each of the next four years. There are no interest payments and taxes are at a rate of 25%. It is considering the purchase...
-
The table lists the smoking habits of a group of college students. Non-smoker Regular Smoker | Heavy Smoker Total 135 Sex Man Woman 187 Total 322 428 47 21 68 559 187 213 10 400 a. If a student is...
-
A Business Analytics company provide a BA solution that enables insurance companies to better retain customers who might otherwise defect by predicting the likelihood of their attrition (leaving the...
-
In muscle tissue, the ratio of phosphorylase a to phosphorylase b determines the rate of conversion of glycogen to glucose 1phosphate. Classify how each event affects the rate of glycogen breakdown...
-
What advantage does the fixed charge coverage ratio offer over simply using times interest earned?
-
Prepare in good form an income statement for Virginia Slim Wear. Take your calculations all the way to computing earnings per share. Sales $1,360,000 Shares outstanding 104,000 Cost of goods sold...
-
Becker Brothers is the managing underwriter for a 1.45-million-share issue by Jays Hamburger Heaven. Becker Brothers is handling 10 percent of the issue. Its price is $27 per share and the price to...
-
An anonymous e-mail is sent to an internal auditor that there is fraud in the inventory/ warehousing cycle. Suggest some appropriate audit steps.
-
Go to the Internet and listen to the song by Johnny Cash called "One Piece at a Time." Outline some lessons from the song.
-
During a brainstorming session, a suggestion is made that the most likelihood of fraud in a particular division is in the area of acquisition and payment cycle. Outline five audit steps to help find...
Study smarter with the SolutionInn App