Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show your work i need the formulas used in each part necessary, thank you begin{tabular}{|r|r|r|r|r|r|r|r|} hline price & sec market value & net sales

please show your work i need the formulas used in each part necessary, thank you image text in transcribed
\begin{tabular}{|r|r|r|r|r|r|r|r|} \hline price & sec market value & net sales & \% chg in price & P/E ratio & dic velid & JV beta \\ \hline 120.0 & 212530.4 & 34608.0 & 45.0 & 47.8 & 1.3 & 0.6 \\ \hline 131.0 & 39927.6 & 5530.0 & 76.2 & 50.3 & 0.6 & 1.0 \\ \hline 84.9 & 42.950 .2 & 11673.0 & 0.0 & 39.8 & 1.2 & 0.6 \\ \hline 244.6 & 71076.8 & 18207.0 & 2.9 & 47.0 & 1.3 & 0.7 \\ \hline 131.9 & 3818.1 & 860.5 & 133.4 & 473.5 & 0.6 & 1.7 \\ \hline 111.3 & 7385.4 & 2937.1 & 2.1 & 30.9 & 0.8 & 0.6 \\ \hline 50.6 & 1039.1 & 129.4 & 108.5 & 48.9 & 0.8 & 1.4 \\ \hline 121.2 & 163319.0 & 27927.0 & 28.8 & 56.7 & 1.9 & 0.8 \\ \hline 196.3 & 28562.0 & 3091.8 & 24.0 & 41.0 & 0.8 & 0.2 \\ \hline 194.5 & 16601.0 & 3057.0 & 30.8 & 38.6 & 0.8 & 0.5 \\ \hline 248.4 & 93475.3 & 14351.0 & 49.9 & 59.1 & 1.0 & 1.0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline & & & & Risk free rate \\ \hlineX chg in price & P/E ratio & dic yeild & Jy beta & treynor ratio \\ \hline \end{tabular} equal weight cap weight sales weight Download the results into excel and remove all industries except the one assigned to you. If your industry has more than 12 companies, remove any that have a negative P/E ratio. If you still have more than 12 companies, select only the first 12 (sorted alphabetically) for your portfolio. A stock's price will change due to either a change in the company's EPS and/or a ghange in the multiple of EPS (the P/E ratio) that investors are willing to pay. Point out a time period in the above graph when the stock price changed due to anincrease or decrease in the P/E ratio (while the eps was fairly stable) rather than to a change in the earnings per share (while the P/E ratio remained fairly stable). 2 marks Which company in your portfolio is most likely to appeal to a "Value" investor and why? 2 marks Which company in your portfolio is most likely to appeal to a "Momentum" investor and why? 2 marks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Corporate Finance

Authors: Richard Brealey

10th Global Edition

0071314172, 9780071314176

More Books

Students also viewed these Finance questions