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Utilize excel to calculate the following for each firm: Permanent Earnings ratio (Perm EPS / Total EPS) Find the relationship between the various variables and
- Utilize excel to calculate the following for each firm:
- Permanent Earnings ratio (Perm EPS / Total EPS)
- Find the relationship between the various variables and stock price by plotting stock price against these variables in excel and using a straight line fit. Enable excel to display the equation of the best-fit line.
- Stock price (Y axis) vs Earnings per share (EPS) (X axis)
Please help me on number 2 I am having trouble with it so if you could please explain the steps thank you!
A B D F H 1 Firm ID number Permanent Earnings ratio Stock price this year Permanent Earnings per share this year Transitory Earnings per share Total Earnings per share this year Projected Total Earnings per share next yea Projected Stock Price next 2 1 0.780009297 32.04286698 3.196531792 0.901537047 4.098068839 4.257895428 3 2 0.80095214 19.99293666 1.858203694 0.461789726 2.31999342 2.50581379 4 3 0.819971959 18.9307161 1.479520196 0.324834428 1.804354623 1.952306643 5 4 0.794215639 16.99249236 1.401072386 0.363023304 1.76409569 1.904202928 6 5 0.772242691 23.30015217 2.058145612 0.607008279 2.665153891 2.541665154 7 6 0.696878526 20.10455204 1.790338164 0.778743961 2.569082126 2.497468599 8 7 0.716015919 15.76563778 1.218859456 0.483420374 1.70227983 1.690091235 9 8 0.848558628 35.73701046 3.550036753 0.633571354 4.183608107 4.538611782 10 9 0.71995611 16.22481988 1.396175227 0.543075245 1.939250472 1.799632949 11 10 0.694957177 18.29518047 1.690487885 0.742018664 2.432506549 2.314172397 A B D F H 1 Firm ID number Permanent Earnings ratio Stock price this year Permanent Earnings per share this year Transitory Earnings per share Total Earnings per share this year Projected Total Earnings per share next yea Projected Stock Price next 2 1 0.780009297 32.04286698 3.196531792 0.901537047 4.098068839 4.257895428 3 2 0.80095214 19.99293666 1.858203694 0.461789726 2.31999342 2.50581379 4 3 0.819971959 18.9307161 1.479520196 0.324834428 1.804354623 1.952306643 5 4 0.794215639 16.99249236 1.401072386 0.363023304 1.76409569 1.904202928 6 5 0.772242691 23.30015217 2.058145612 0.607008279 2.665153891 2.541665154 7 6 0.696878526 20.10455204 1.790338164 0.778743961 2.569082126 2.497468599 8 7 0.716015919 15.76563778 1.218859456 0.483420374 1.70227983 1.690091235 9 8 0.848558628 35.73701046 3.550036753 0.633571354 4.183608107 4.538611782 10 9 0.71995611 16.22481988 1.396175227 0.543075245 1.939250472 1.799632949 11 10 0.694957177 18.29518047 1.690487885 0.742018664 2.432506549 2.314172397Step by Step Solution
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