Here are some data for five companies in the same industry: You have been asked to calculate
Question:
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?
Transcribed Image Text:
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
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Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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