Calculation of the implied growth duration of various

Assignment Help Finance Basics
Reference no: EM13356795

Calculation of the implied growth duration of various companies and decision making.

You are given the following information about two computer software firms and the S&P Industrials:

 

Company A

Company B

S P industrials

P/E ratios

30

27

18

Expected growth

0.18

0.15

0.07

Dividend yield

0

0.01

0.02

a). Compute the growth duration of each company stock relative to the S&P Industrials.

b). Compute the growth duration of Company A relative to Company B.

c). Given these growth durations, what determines your investment decision?

Reference no: EM13356795

Questions Cloud

Theory question based on investment in stockan investor : theory question based on investment in stock.an investor wishes to buy a companys stock. based on her market research
Multiple choice questions on equity valuation and wacc1 : multiple choice questions on equity valuation and wacc.1. nbspnbspassume that mary brown inc. hired you as a consultant
Calculation of firms growth rate and capital gains yield at : calculation of firms growth rate and capital gains yield at given dividend options1.nbspnbsp investors receive a total
Calculation of current required return on the stock1 stock : calculation of current required return on the stock.1 stock at abc co sold last year at 48per share and dividends paid
Calculation of the implied growth duration of various : calculation of the implied growth duration of various companies and decision making.you are given the following
Calculation of the implied growth duration of various : calculation of the implied growth duration of various companies and decision making.you are given the following
Calculation of the implied growth duration of company by : calculation of the implied growth duration of company by using various parameters.1. what is the implied growth
Stocks coefficient of variation required rate return and : stocks coefficient of variation required rate return and risk analysisstock x has a 10 expected return a beta
Stocks coefficient of variation required rate return and : stocks coefficient of variation required rate return and risk analysisstock x has a 10 expected return a beta

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the discounted payback period

What is the discounted payback period for these cash flows if the initial cost is $5,900?

  Subsidiary corporation as well as calculation of income

Sale of Machinery to Subsidiary Corporation as well as Calculation of Income in Acquired Company

  What was the most recent dividends per share paid

What was the most recent dividends per share paid on the stock(hint: you are looking for DO)?

  Risk of finance-portfolio-investments

What are unique risks associated with foreign investments? How might an investor protect his/her portfolio against these risks? Is it possible to protect a portfolio from all types of risk? Explain your answer.

  Estimated retained earnings at ending of year

Earnings after tax will total= $23,400, and MP will pay= $12,400 in dividends. Write down estimated retained earnings at ending of next year?

  Calculate the average cash gain or loss during the month

Construct a cash budget for a typical month and calculate the average cash gain or loss during the month.

  What is implied first year implied zero coupon bond

What is the annual implied five year zero coupon bond (using semi-annual) with a yield maturity of 12% and a par value of 5000.

  What will paul monthly payments be

Paul is buying a new boat for $11,000. The dealer gives him an add-on loan, charging him an annual interest rate of 9.1%. If he takes a 6-year loan, what will Paul's monthly payments be?

  What will be the rate of return on the bond

A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $114 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is.

  Who can recover an amount for its loss

First National agrees to act as Interstate's mortgagee, and Interstate obtains an insurance policy from Good Hands to cover the property. A fire totally destroys the warehouse.

  Discuss the differences in the two corporations

Discuss the differences in the two corporations in approximately 75 words. Your answer can be completed below your spreadsheet analysis.

  Distinguish between international funds and global funds

Distinguish between international funds, global funds, worldwide funds, and oversea funds and determine how international funds have been performing, in the U.S. dollar terms, relative to mutual funds offering purely domestic portfolios

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