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Problem Prepare a table listing the variables that influence the eanings multiplier for your chosen industry and the market index series for the most recent
Problem Prepare a table listing the variables that influence the eanings multiplier for your chosen industry and the market index series for the most recent 10 years a. Do the average dividend-payout ratios for your industry and the market index differ? How should the dividend payout influence the difference between the multipliers? b. Based on the fundamental factors, would you expect the risk for this industry to differ from that for the market? In what direction, and why? Calculate the industry beta using monthly data for five years. Based on the fundamental factors and the computed systematic risk, how does this industry's risk compare to the market? What effect will this difference in risk have on the industry multiplier relative to the market multiplier? C. Analyze and discuss the different components of growth (retention rate, total asset turnover, total assets/equity, and profit margin) for your chosen industry and a market index during the most recent 10 years. Based on this analysis, how would you expect the growth rate for your industry to compare with the growth rate for the market index? How would this difference in expected growth affect the multiplier? Problem Prepare a table listing the variables that influence the eanings multiplier for your chosen industry and the market index series for the most recent 10 years a. Do the average dividend-payout ratios for your industry and the market index differ? How should the dividend payout influence the difference between the multipliers? b. Based on the fundamental factors, would you expect the risk for this industry to differ from that for the market? In what direction, and why? Calculate the industry beta using monthly data for five years. Based on the fundamental factors and the computed systematic risk, how does this industry's risk compare to the market? What effect will this difference in risk have on the industry multiplier relative to the market multiplier? C. Analyze and discuss the different components of growth (retention rate, total asset turnover, total assets/equity, and profit margin) for your chosen industry and a market index during the most recent 10 years. Based on this analysis, how would you expect the growth rate for your industry to compare with the growth rate for the market index? How would this difference in expected growth affect the multiplier
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