Q11 Andy Bailey recently graduated from the University of MF and is joining the Bank of MF as a financial analyst. He is assigned to conduct relative valuation to determine if the implied stock price per share of Amazon.com Inc. (ticker: AMZN). Bailey collects the following information about Amazon and its comparable companies. He notices that the earnings per share of NWSA and DXLG are negative. However, Bailey believes it is normal that some companies have negative EPS due to reasons such as asset impairment or corporate restructuring cost. Therefore, Bailey decides he should still include NWSA and DXLG when calculating the benchmark price-earnings ratio. Q: Is Bailey's decision on including NWSA and DXLG when calculating the benchmark price-earnings ratio justifiable? Why? Target Comparable AMZN VIAC GOOGL YNDX NWSA MSFT CHTR IBM DXLG Price 3256.93 37.26 1752.64 69.58 11.86 203.51 661.55 125.88 0.70 Basic EPS 42.66 3.93 59.15 1.03 -2.16 5.82 15.85 6.28 -0.89 Diluted EPS 41.83 3.92 54.92 1.00 -2.16 5.76 15.40 6.23 -1.12 PE Ratio - Basic 76.34 9.48 29.63 67.25 -5.49 34.97 41.75 20.05 -0.79 PE Ratio - Diluted 77.87 9.51 31.91 69.89 -5.49 35.31 42.97 20.19 -0.63

Q11 Andy Bailey recently graduated from the University of MF and is joining the Bank of MF as a financial analyst. He is assigned to conduct relative valuation to determine if the implied stock price per share of Amazon.com Inc. (ticker: AMZN). Bailey collects the following information about Amazon and its comparable companies. He notices that the earnings per share of NWSA and DXLG are negative. However, Bailey believes it is normal that some companies have negative EPS due to reasons such as asset impairment or corporate restructuring cost. Therefore, Bailey decides he should still include NWSA and DXLG when calculating the benchmark price-earnings ratio. Q: Is Bailey's decision on including NWSA and DXLG when calculating the benchmark price-earnings ratio justifiable? Why? Target Comparable AMZN VIAC GOOGL YNDX NWSA MSFT CHTR IBM DXLG Price 3256.93 37.26 1752.64 69.58 11.86 203.51 661.55 125.88 0.70 Basic EPS 42.66 3.93 59.15 1.03 -2.16 5.82 15.85 6.28 -0.89 Diluted EPS 41.83 3.92 54.92 1.00 -2.16 5.76 15.40 6.23 -1.12 PE Ratio - Basic 76.34 9.48 29.63 67.25 -5.49 34.97 41.75 20.05 -0.79 PE Ratio - Diluted 77.87 9.51 31.91 69.89 -5.49 35.31 42.97 20.19 -0.63

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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Baker Industries’ net income is $26000, its interest expense is $6000, and its tax rate is 40%. Its notes payable equals $26000, long-term debt equals $70000, and common equity equals $255000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations. ROE fill in the blank 2% ROIC fill in the blank 3% Please don't provide image based solution thanks
UNIT 7-1
2. An analyst for Acme, R. Runner, has recommended that Peter the Anteater purchase shares in a private firm (a firm that is not traded on any exchange) called Dynamite Corp. Dynamite has 30% debt and 70% equity. R. Runner believes that Dynamite will generate a return of 10% over the next year. Since Y. Lee is new to the job, he decides to do a little research on his own. He finds a company, Explosions Unlimited, that has very similar business as Dynamite. Explosions has an equity beta of 1.05 and is composed of 40% debt and 60% equity. Should Peter the Anteater buy the stock? The expected return on the market is 12% and the expected risk-free rate is 5%.
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This is not a writing assignment. I was asked by the last person answering my questions to break down the question in multiple questions, so I did. For each of the following scenarios, discuss whether profit opportunities exist from trading in the stock of the firm under the conditions that (2) the market is weak form but not semi-strong form efficient. The stock price has risen steadily each day for the past 30 days.b. The financial statements for a company were released three days ago, and you believe you’ve uncovered some anomalies in the company’s inventory and cost control reporting techniques that are causing the firm’s true liquidity strength to be understated.c. You observe that the senior management of a company has been buying a lot of the company’s stock on the open market over the past week. Use the following information for the next two questions: Technical analysis is a controversial investment practice. Technical analysis covers a wide array of techniques, which are…
am. 128.
Video Excel Online Structured Activity: ROE and ROIC Baker Industries' net income is $25000, its interest expense is $5000, and its tax rate is 40%. Its notes payable equals $27000, long-term debt equals $75000, and common equity equals $240000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet What are the firm's ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations. ROE ROIC Check My Work % % Reset Problem
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