HGUS Inc. has an equity book value of €22,500,000, expected earnings of€3,150,000, and a retention ratio of 0.55. The required return for the company'sshareholders is 11%. What is the justified trailing P/E ratio for HGUS?10.214.713.018.0 Calculate the 14-day RSI based on the information in the table below.PriceUp changesDown changes81.1779.4578.1677.8479.9080.4579.9880.5681.4782.0081.9082.7983.0582.0083.11Day0123456789101112131463.0749.9558.1957.020002.060.5500.580.910.5300.890.2601.11-1.72-1.29-0.3200-0.47000-0.1000-1.050

Part A: Equity book value=22,500,000 Expected earnings=3,150,000 Required return=11% Retention…

HGUS Inc. has an equity book value of €22,500,000, expected earnings of €3,150,000, and a retention ratio of 0.55. The required return for the company's shareholders is 11%. What is the justified trailing P/E ratio for HGUS? 10.2 14.7 13.0 18.0

HGUS Inc. has an equity book value of €22,500,000, expected earnings of €3,150,000, and a retention ratio of 0.55. The required return for the company's shareholders is 11%. What is the justified trailing P/E ratio for HGUS? 10.2 14.7 13.0 18.0

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

HGUS Inc. has an equity book value of €22,500,000, expected earnings of
€3,150,000, and a retention ratio of 0.55. The required return for the company's
shareholders is 11%. What is the justified trailing P/E ratio for HGUS?
10.2
14.7
13.0
18.0

Calculate the 14-day RSI based on the information in the table below.
Price
Up changes
Down changes
81.17
79.45
78.16
77.84
79.90
80.45
79.98
80.56
81.47
82.00
81.90
82.79
83.05
82.00
83.11
Day
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
63.07
49.95
58.19
57.02
0
0
0
2.06
0.55
0
0.58
0.91
0.53
0
0.89
0.26
0
1.11
-1.72
-1.29
-0.32
0
0
-0.47
0
0
0
-0.10
0
0
-1.05
0

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