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**** I need help answering the boxes highlighted in YELLOW. **** Price/Actual EPS Price/2017 EPS Price/2018 EPS Dividend Yield (Dividend / Current Share Price) Dividend
**** I need help answering the boxes highlighted in YELLOW. ****
Price/Actual EPS | Price/2017 EPS | Price/2018 EPS | Dividend Yield (Dividend / Current Share Price) | Dividend Payout (Dividend / Current EPS) | |
DuPont | 28.70 | 20.70 | 19.44 | 1.91% | 54.87% |
Dow | 17.76 | 15.36 | 14.18 | 2.94% | 52.27% |
PPG | 18.81 | 17.49 | 15.82 | 1.43% | 26.80% |
3. The following table shows historical and projected annual earnings growth rates. | |||||
5-Year Historic Earnings Growth Rates | 5-Year Projected Earnings Growth Rates | ||||
DuPont | -2.43% | 8.06% | |||
Dow | 17.39% | 6.96% | |||
PPG | 10.36% | 9.54% | |||
Calculate PE to earnings growth rates (PEG), using the information above and calculations from Question 2. | |||||
Current PE / 5-Yr Historic Growth | 1-Yr Ahead PE Forecast / 5-Yr Projected Growth | 2-Yr-Ahead PE Forecast / 5-Yr Projected Growth | |||
DuPont | |||||
Dow | |||||
PPG | |||||
Classify these companies by cell (1 to 9) based on the PEG matrix. Assume that the average PE is 20 and the average earnings growth is 9.6%. | |||||
High PE | Average PE (20) | Low PE | |||
High Growth | 1. PEG = 2.08 or greater | 2. PEG = 2.08 or less | 3. PEG < 2.08 | ||
Average Growth (9.6%) | 4. PEG > 2.08 | 5. PEG = 2.08 | 6. PEG < 2.08 | ||
Low Growth | 7. PEG > 2.08 | 8. PEG > 2.08 | 9. PEG = 2.08 or less | ||
DuPont | |||||
Dow | |||||
PPG |
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