What is the sawtooth effect that may occur in forecasting

Assignment Help Financial Management
Reference no: EM131327396

1. What is the sawtooth effect that may occur in forecasting? How does it happen, and how would an analyst remedy it in their forecast?

2. Today the common stock of Gresham Technology closed at ?$20.90 per? share, down ?$0.31 from yesterday. If the company has 5.1 million shares outstanding and annual earnings of ?$11.6 ?million, what is its? P/E ratio? today? What was its? P/E ratio? yesterday?

Reference no: EM131327396

Questions Cloud

Market interest rate on these bonds : Grossnickle Corporation issued 20-year, noncallable, 6.7% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years..
Identify data security measures to prevent security issues : Suppose you are also in charge of securing your organization's data. Identify at least two (2) data security measures that you believe are necessary to prevent data security issues. Justify your response.
What will the annual payments have to be : The borrower wants to make annual payments at the end of each year into a sinking fund that will earn compound interest at an annual rate of 10 percent. What will the annual payments have to be?
Is this a one-tailed or two-tailed hypothesis : A researcher predicts that watching a film on institutionalization will change students' attitudes about chronically mentally ill patients. What does it mean to set alpha at .05? What is your null hypothesis? Alternate hypothesis? Is this a one-tail..
What is the sawtooth effect that may occur in forecasting : What is the sawtooth effect that may occur in forecasting? How does it happen, and how would an analyst remedy it in their forecast? Today the common stock of Gresham Technology closed at ?$20.90 per? share, down ?$0.31 from yesterday. If the company..
Write suggestions for writing an effective book : You are reading a book that no one else in the class has likely read. Make sure to write as if the reader knows nothing about your subject. The goal of this book review is to both prove your mastery of the material at hand and to bring something n..
Shares of stock outstanding and uses cumulative voting : A company originally issued bonds that were rated investment grade. These bonds have now been downgraded to junk status. These bonds are referred to as: A firm has four open positions on its board of directors. How many shares do you need to own to g..
What must the equivalent nominal annual rate : What must the equivalent nominal annual rate (ENAR) be for each of these two investments to ensure that an equivalent annual yield of 12 percent is earned?
A protective covenant : Last year, when the stock of Alpha Minerals was selling for $49.50 a share, the dividend yield was 3.4 percent. Today, the stock is selling for $41 a share. What is the total return on this stock if the company maintains a constant dividend growth ra..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the bid or offer quotations

Given the following spot quotations in London:- Calculate the following bid/offer quotations, also in London:-  CHF against AUD-  GBP against AUD.

  External equity financing

Northern Pacific Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 50% with a $5 million investment in plant and machinery.

  What are your feelings about plagiarism

What are your feelings about plagiarism? Where should the line be drawn? Is it fair to flunk a writer who plagiarizes? Should a little plagiarism be allowed? Explain from the side of a student and from the side of an instructor

  What will be the firms cash cycle

Suppose that Ken-Z Art Gallery has annual sales of $894,000, cost of goods sold of $584,000, average inventories of $170,000, average accounts receivable of $139,000, and an average accounts payable balance of $64,000. Assuming that all of Ken-Z’s sa..

  Does not qualify for bonus depreciation

Janis bought a 2012 Mercedes Benz S550 on 1 July 2016 for 70,000. She uses it 100% in her business as a folksinger. She wishes to take the maximum amount of depreciation and 179 expense allowed on the vehicle. How much of her $70,000 cost can she rec..

  What is the companys cost of equity

Chandeliers Corp. has no debt but can borrow at 6.3 percent. The firm’s WACC is currently 8.1 percent, and the tax rate is 35 percent. What is the company’s cost of equity? If the firm converts to 50 percent debt, what will its cost of equity be?

  Determine the required rate of return on common stock

Try to determine the required rate of return on King Farm Corporation’s common stock. The firms beta is 1.82. The rate on a 10 year treasury bond is 3.63 % and the market risk premium is 6.53 percent.

  Happen to the total working capital requirement

David Vardon runs a small manufacturing business which he started 5 years ago. Although sales growth and profits have been fine, he is becoming increasingly concerned about his liquidity position and is under pressure from the bank to reduce his o..

  What is the average inventory including safety stock

Appliances for Less is a local appliance store. It costs this store $20.98 per unit annually for storage, insurance and so forth to hold microwaves in its inventory. Sales this year are anticpated to be 378. each order costs $76. The company is using..

  What is the equipment after-tax net salvage value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $23 million, of which 75% has been depreciated. The used equipment can be sold today for $8.05 million, and its tax rate is 35%. What is the equipment..

  External equity financing-energy efficient lighting solution

Gardial GreenLights, a manufacturer of energy efficient lighting solutions, has had such success with its new products that it is planning to substantially expand its manufacturing capacity with a $20 million investment in new machinery.

  Retirement in order to be able to fund your retirement

At your age (assume 20) you can assume that you will live to be 100. If you graduate at 23 and start to work, you can expect to work for 47 years, until age 70. Ignoring inflation in all calculations, how much will you need to have saved at retiremen..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd