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XYZ Co. is a conglomerate with two devisions. One division sells consumer electronics. could you explain it in details? Use following information for Questions 13
XYZ Co. is a conglomerate with two devisions. One division sells consumer electronics. could you explain it in details?
Use following information for Questions 13 and 14: XYZ Co. is a conglomerate with two divisions. One division sells consumer electronics, has total assets of $20 million, and can generate annual earnings of $3million. The other division sells frozen food, has assets of $5 million, and can generate annual earnings of $1 million. XYZ Co. has a total of 5 million common shares outstanding and has a total debt ratio of O. The following table summarizes financial information on other forms. Firm Business Beta Total Debt Ratio Stock Price EPS E Consumer Electronics 1.2 0.2 $164.40 $12.00 IF Technology 1.5 0.15 $112.00 $7.00 G Frozen Food 0.9 0.45 $44.00 $4.00 H 0.8 0.38 $100.00 $8.00 Conglomerate Utility 0.6 0.75 $120.00 $5.00 Use the method of multiples to estimate XYZ's stock price. $9.88 $10.00 $10.42 $12.35 13.20 Which of the following is most likely to be the beta of XYZ's stock? 0.74 0.80 1.12 1.28 1.36 Use following information for Questions 13 and 14: XYZ Co. is a conglomerate with two divisions. One division sells consumer electronics, has total assets of $20 million, and can generate annual earnings of $3million. The other division sells frozen food, has assets of $5 million, and can generate annual earnings of $1 million. XYZ Co. has a total of 5 million common shares outstanding and has a total debt ratio of O. The following table summarizes financial information on other forms. Firm Business Beta Total Debt Ratio Stock Price EPS E Consumer Electronics 1.2 0.2 $164.40 $12.00 IF Technology 1.5 0.15 $112.00 $7.00 G Frozen Food 0.9 0.45 $44.00 $4.00 H 0.8 0.38 $100.00 $8.00 Conglomerate Utility 0.6 0.75 $120.00 $5.00 Use the method of multiples to estimate XYZ's stock price. $9.88 $10.00 $10.42 $12.35 13.20 Which of the following is most likely to be the beta of XYZ's stock? 0.74 0.80 1.12 1.28 1.36 Step by Step Solution
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