Growth stock and p/e ratio , Business Economics

Part 1: Show the P/E ratio for each company. Answer the question: Which of these two firms seems to be more of a "growth stock"? Explain the reasons for your choice.

Part 2: Obtain a forecast of each firm's expected earnings per share in the coming year under "Analysts Estimates". Show these estimates as part of your answer. Answer the question: What is the present value of growth opportunities for each firm as a fraction of the stock price? Show your work. The required rate of return on stocks for this exercise is r = 8%.

Part 3: Answer the following question in full and give your reasons: Are the relative values you obtain for PVGO consistent with the P/E ratios?

 

 

Posted Date: 2/14/2013 8:13:58 AM | Location : United States







Related Discussions:- Growth stock and p/e ratio , Assignment Help, Ask Question on Growth stock and p/e ratio , Get Answer, Expert's Help, Growth stock and p/e ratio Discussions

Write discussion on Growth stock and p/e ratio
Your posts are moderated
Related Questions
How do I calculate NPV with benefits and costs?

define scarcity and opportunity cost? what role these two concepts play in the making of decision making?

Why is it significant for the project manager to establish a network of contacts in the IS organisation and also in the user organisation? In what conditions can these networks be

#question.discuss the contention that the existance of a labour market is characterised by perfect competition is a fallacy.

explain major decisions in successful implementation of sales promotion programs


EXPLAIN WHY INTERDEPENDENCE IN OLIGOPOLY RESULTS IN A TENSION BETWEEN COOPERATION AND COMPETITION.

2. You recommend spending $10,000 on equipment that will increase sales of your product by $1000 a year and reduce annual operating costs by $800. The equipment has 10-year lifetim


If the Government decreases the interest rates on capital goods such as new plant and equipment and building. Investment also include spending on working capital such as stocks of