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You are given the three EPS estimates and the fonlowing estimates related to the market earnings multiple: a. Based on the three EPS and P/E

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You are given the three EPS estimates and the fonlowing estimates related to the market earnings multiple: a. Based on the three EPS and P/E estimates, compute the high, low, and consensus intrinsic market value for the Sgap industrials Index in 2018 . Do not round intermediate calculations. Round your answers to the nearest cent. High intrinsic market value: $ Low intrinsk market valuet 5 Consensus intrinsic market value: 5 b. Assuming that the SAP Industrials index at the beginning of the year was priced at 1,850, compute your estimated rate of return under the three scenarios from Part a. Do not round intermediate calculations. Round yout answers to one decimal place. Use a minus sign to enter negative rates of return, if any Rate of return (optimistic scenario): Rate of return (pessimistic scenario) Rate of return (consensus scenario): Ausuming your required rate of return is equal to the consensus, how would you weight the Ss. tndustrials Index in your alobal portfolio? One should the 1.5. stoces in a global portfolio

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