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Treynor Ple Company is a food company specializing in high-calorle snack foods. It Is seeking to diversify Its food business and lower Its risks. It
Treynor Ple Company is a food company specializing in high-calorle snack foods. It Is seeking to diversify Its food business and lower Its risks. It is examining three companles-a gourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companles can be bought at the same multiple of earnings. The following represents information about all the companles. a-1. Compute the coefficlent of varlation for each of the four companles. Note: Enter your answers In millions (e.g., \$100,000 should be entered as ".10"). Round your answers to 3 declmal places. a-2. Which company is the least risky? Nutritional products company Gourmet restaurant Treynor Ple Company Baby food company a-3. Which company is the most risky? Treynor Ple Company Baby food company Nutritional products company Gourmet restaurant b. Which of the acquisition candidates is most Ilkely to reduce Treynor Ple Company's risk? Baby food company Gourmet restaurant Nutritional products company
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