file:///Users/ munaal-saidi/Downloads/FINC5540%20HW4(1).pdf FINC5540 HW4(1).pdf Screen Shot 2020-10-29 at 11.50.45 AM.png 2,880x1,800 pixels + 3) Compare the calculated PE multiples and the actual trailing PE multiples and discuss whether each firm's value is overvalued or undervalued. 4) Regress of the trailing PE on expected growth and standard deviation, PE = a + BiEG + B2SD and report a, B1, B2, and R2. 5) Calculate each firm's estimated PE based the regression model. Company Name Coca-Cola Bottling Molson Inc. Ltd. 'A' Anheuser-Busch Corby Distilleries Ltd. Chalone Wine Group Ltd. Andres Wines Ltd. A' Todhunter Int'l Brown-Forman 'B' Coors (Adolph) 'B' PepsiCo, Inc. Coca-Cola Boston Beer 'A' Whitman Corp. Mondavi (Robert) A Coca-Cola Enterprises Hansen Natural Corp ? Trailing PE (PE) Expected Growth (EG) 29.33 10.15% 44.49 16.38% 25.22 11.63% 16.35 8.40% 21.76 14.47% 8.98 3.56% 9.35 3.93% 10.10 12.25% 23.81 10.50% 33.14 11.17% 45.01 19.23% 11.11 18.10% 25.21 11.50% 16.87 14.85% 37.86 27.18% 10.03 17.25% Standard Deviation (SD) Pred. PE 21.13% ? 22.00% ? 23.57% ? 24.32% ? 24.12% ? 25.64% ? 26.11% ? 30.20% ? 29.85% ? 31.37% ? 35.72% ? 40.25% ? 45.01% ? 45.90% ? 52.02% ? 62.51% ? 6) Compare the trading PE and the estimated PE. Discuss your findings. 7) Is there any difference in your findings for problem 3 and problem 5? file:///Users/ munaal-saidi/Downloads/FINC5540%20HW4(1).pdf FINC5540 HW4(1).pdf Screen Shot 2020-10-29 at 11.50.45 AM.png 2,880x1,800 pixels + 3) Compare the calculated PE multiples and the actual trailing PE multiples and discuss whether each firm's value is overvalued or undervalued. 4) Regress of the trailing PE on expected growth and standard deviation, PE = a + BiEG + B2SD and report a, B1, B2, and R2. 5) Calculate each firm's estimated PE based the regression model. Company Name Coca-Cola Bottling Molson Inc. Ltd. 'A' Anheuser-Busch Corby Distilleries Ltd. Chalone Wine Group Ltd. Andres Wines Ltd. A' Todhunter Int'l Brown-Forman 'B' Coors (Adolph) 'B' PepsiCo, Inc. Coca-Cola Boston Beer 'A' Whitman Corp. Mondavi (Robert) A Coca-Cola Enterprises Hansen Natural Corp ? Trailing PE (PE) Expected Growth (EG) 29.33 10.15% 44.49 16.38% 25.22 11.63% 16.35 8.40% 21.76 14.47% 8.98 3.56% 9.35 3.93% 10.10 12.25% 23.81 10.50% 33.14 11.17% 45.01 19.23% 11.11 18.10% 25.21 11.50% 16.87 14.85% 37.86 27.18% 10.03 17.25% Standard Deviation (SD) Pred. PE 21.13% ? 22.00% ? 23.57% ? 24.32% ? 24.12% ? 25.64% ? 26.11% ? 30.20% ? 29.85% ? 31.37% ? 35.72% ? 40.25% ? 45.01% ? 45.90% ? 52.02% ? 62.51% ? 6) Compare the trading PE and the estimated PE. Discuss your findings. 7) Is there any difference in your findings for problem 3 and problem 5