PROBLEM 8-8 Given Levered equity beta Risk free rate (10 year US Treasury bond) Market risk premium 5.02% 5.00% 5.69 0.026462039 dates 40.00% 86.01 10.00% Dividend payout ratio 5-year growth rate estimate Dividend Yield % Long-term Debt to ul Price to Book Value Net Profit Price To Free Return on Equity % Description Market Ca Cash Flow 14.94% 18 .40% 23.72% 18.16% 14.27% 11 .56% 15.70% 1.48% Sector. Industrial Goods Industry: Industrial Equipment & Components Emerson Electric Co Parker-Hannifin Corp Roper Industries Inc. Pentair Inc. Walter Industries Inc 16.606 15.900 19.276 14.150 24.685 17.943 23.537 0.87 0.649 0.494 0.308 0.603 0.485 4.036 5.40% 7.90% 9.54% 8.25% 1 1.89% 4.48% 7.38% 75.481 134.900 65.156 34.392 232.735 147.667 10.682 50.471 $34.61B 9.81B 4.44B 3.23B 2.19B 2.40% 1.20% 0.50% 1.70% 0.30% 4.257 2.298 3.122 1.974 2.731 Given Solution Legend Value given in problem Formula/Calculation/Analysis required Qualitative analysis or Short answer required Crystal Ball Input Emerson Comparison to Indus ROE Dividend Yield LTD to Equity Price to Book Net Profit Margin Price to Cash Flow -Goal Seek or Solver cell - Crystal Ball O PROBLEM 8-8 Given Levered equity beta Risk free rate (10 year US Treasury bond) Market risk premium 5.02% 5.00% 5.69 0.026462039 dates 40.00% 86.01 10.00% Dividend payout ratio 5-year growth rate estimate Dividend Yield % Long-term Debt to ul Price to Book Value Net Profit Price To Free Return on Equity % Description Market Ca Cash Flow 14.94% 18 .40% 23.72% 18.16% 14.27% 11 .56% 15.70% 1.48% Sector. Industrial Goods Industry: Industrial Equipment & Components Emerson Electric Co Parker-Hannifin Corp Roper Industries Inc. Pentair Inc. Walter Industries Inc 16.606 15.900 19.276 14.150 24.685 17.943 23.537 0.87 0.649 0.494 0.308 0.603 0.485 4.036 5.40% 7.90% 9.54% 8.25% 1 1.89% 4.48% 7.38% 75.481 134.900 65.156 34.392 232.735 147.667 10.682 50.471 $34.61B 9.81B 4.44B 3.23B 2.19B 2.40% 1.20% 0.50% 1.70% 0.30% 4.257 2.298 3.122 1.974 2.731 Given Solution Legend Value given in problem Formula/Calculation/Analysis required Qualitative analysis or Short answer required Crystal Ball Input Emerson Comparison to Indus ROE Dividend Yield LTD to Equity Price to Book Net Profit Margin Price to Cash Flow -Goal Seek or Solver cell - Crystal Ball O