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Treynor Ple Company is a food company specializing in high-calorie snack foods. It is seeking to diversity its food business and lower its risks. It
Treynor Ple Company is a food company specializing in high-calorie snack foods. It is seeking to diversity its food business and lower its risks. It is examining three companies a gourmet restaurant chain, a baby food company, and a nutritional products firm Each of these companies can be bought at the same multiple of eamings. The following represents information about all the companies Correlation with Standard deviation Treynor Ple Sales Company Expected Earnings In Earnings Company (5 millions) es millions (5 millions Treynor Pie Company + 1.0 $ 185 $12 5 3.0 Gourmet restaurant +0.6 72 1.3 Baby food company 51 Nutritional products company 79 1.4 2. 0-1. Compute the coefficient of variation for each of the four companies. (Enter your answers in millions (eg. $100,000 should be entered as "10"). Round your answers to 3 decimal places.) Coefficient of Variation Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company 0-2. Which company is the least risky? Baby food company O Gourmet restaurant Nutritional products company Treynor Pie Company 0-3. Which company is the most risky O Gourmet restaurant Treynor Ple Company Baby food company Nutritional products company b. Which of the acquisition candidates is most likely to reduce Treynor Pie Company's risk? Gourmet restaurant Nutritional products company Baby food company
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