Estimate the additional equity risk premium

Assignment Help Finance Basics
Reference no: EM133197428

You are an analyst who specializes in semiconductors. Impressive Inc has operations in the U.S. whereas Imitation Inc has operations emerging markets. The current price earnings ratio for Impressive is 25 and the current price earnings ratio for imitation is 15. Both firms are in stable growth with a perpetual growth rate of 3.2%. Both Impressive and Imitation have a payout ratio of 60%. Both firms are also priced correctly via DCF approach.

Estimate the additional equity risk premium that the market is charging for Imitation Inc for being an emerging market semiconductor company

Reference no: EM133197428

Questions Cloud

What is the icd-10-cm code for case : Case 1: Patient was examined for the first time and found to have a sprain of the superior tibiofibular joint and ligament of the right knee.
Discuss origin and mode of transmission of zoonotic disease : Pick a zoonotic disease or a disease with zoonotic origins that can or is affecting someone in the United States. Please tell us about the disease, origin, mode
Explain what is meant by the social construction of race : Explain what is meant by the social construction of race, class, gender, and sexuality. Compare and Contrast 2 theoretical paradigms of sociology in general.
Effects of increases on minimum wages : Begin by locating a scholarly article regarding the effects of increases on minimum wages and discuss its findings.
Estimate the additional equity risk premium : Estimate the additional equity risk premium that the market is charging for Imitation Inc for being an emerging market semiconductor company
Field of a public health nurse : Explain in detail how these resources could help within the field of a public health nurse
Create a project organization chart to staff the project : OLLO Functional Organizational Structure Paper - Create a project organization chart to staff the project from OLLO using the previously created WBS
What are the three sets of energy equilibrium equations : Using the arrow diagram that represents changes of radiation, how do the arrows change, when more greenhouse gases are added to the Earth's atmosphere?
Features of the asian and mexican financial crises : Study and consider the features of the Asian and Mexican financial crises of the late 1990s. Then discuss the similarities and differences between the two in te

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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