Here are some data for five companies in the same industry: You have been asked to calculate

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Here are some data for five companies in the same industry:

You have been asked to calculate a measure of the industry price?earnings ratio. Discuss the possible ways that you might calculate such a measure. Does changing the method of calculation make a significant difference to the end result?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 08, 2011 07:01 AM

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Here are some data for five companies in the same industry: You have been asked to calculate

Question:

Company Code A B D E $ 10 $ 6.67 -$ 1 $ 6.67 Net income (millions) Total book assets (millions) $ 5 $30.0 $300 $120.00 $50 $120.00 Shares outstanding (millions) Share price 4 2 5 10 $100 $ 5 $ 50 $ 8 $ 10

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Two obvious choices are a Total industry income ov...View the full answer

Principles of Corporate Finance

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