Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan, that trades on the New York Stock Exchange. Use the following information on Stryker and seven other similar companies (indicated by their ticker symbols) to calculate Stryker's implied stock value using each of the 5 indicators of value provided in the chart below. Use the mean values for the 7 other similar companies in the industry as the benchmark to calculate Stryker's implied stock value using its financial data Stryker Corporation (5 millions) Sales Net Incone Number of common shares (millions) Earnings before interest and tax Tax rate Book value of equity Book value interest-bearing debt Indicators of Value Price/earnings (X) MY ELTM/EBIT(1 Tax rate) (X) i firm/sales (X) V equity/Bv equity (X) tir/By tin (X) Indication Priceleamings (0) MV fm/EBIT(1-Tax rate) () MV firmisales (X MV equity BV equity (X) MV firm/BV firm (0) 10,321 1,615 362 Stylar's implied stock value 2,215 26.201 9,112 2,790 Stryker 17.8 18.7 3.5 3.3 2.0 BAX 18.4 23.0 3.1 1.8 24.6 23.9 MV-Market value, BV Book value. Market value is estimated as book value of interest-bearing debt+market value of equity Note: Round your Intermediate calculations to 1 decimal place. Round your final answers to 2 decimal places. 4.2 2.3 COV 20,5 20.5 3.5 3.3 2.6 NOT 4.4 3.3 1.8 AND 22.5 24.0 4.3 4.5 3.6 872 26.3 5.2 4.4 2.1 AME 20.8 21.5 3.8 2.5 1.8

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan, that trades on the New York
Stock Exchange. Use the following information on Stryker and seven other similar companies (indicated by their ticker symbols) to
calculate Stryker's implied stock value using each of the 5 indicators of value provided in the chart below. Use the mean values for the
7 other similar companies in the Industry as the benchmark to calculate Stryker's implied stock value using its financial data
Stryker Corporation (5 millions)
Sales
Net incone
Number of common shares (millions)
Earnings before interest and tax
Tax rate
Book value of equity
Book value interest-bearing debt
Indicators of Value
Price/earnings (X)
HV firm/EBIT(1 Tax rate) (X)
HV firm/sales (X)
MV equity/av equity (X)
HV tir/BV tirn (X)
Indication
Priceleamings (X)
MV frm/EBIT(1-Tax rate) (X)
MV firm/sales (X)
MV equity BV equity (X)
MV firm/BV frm (XX)
10,321
1,615
Stylar's implied
stock value
362
2,215
26.201
9,112
2,790
Stryker
17.8
18.7
3.5
3.3
2.0
BAX
18.4
23.0
3.1
5.3
Box
24.6
23.9
3.1
4.2
2.3
MV-Market value; BV Book value. Market value is estimated as book value of interest-bearing debt+market value of equity
Note: Round your Intermediate calculations to 1 decimal place. Round your final answers to 2 decimal places.
.COM
20.5
20.5
3.5
3.3
2.6
NOT
14.2
17.2
4.4
.3
1.0
ANN
22.5
24.8
4.3
4.5
3.6
STJ
23.4
26.3
5.2
4.4
2.1
ZHE
20.8
21.5
3.8
2.5
1.0
Transcribed Image Text:Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan, that trades on the New York Stock Exchange. Use the following information on Stryker and seven other similar companies (indicated by their ticker symbols) to calculate Stryker's implied stock value using each of the 5 indicators of value provided in the chart below. Use the mean values for the 7 other similar companies in the Industry as the benchmark to calculate Stryker's implied stock value using its financial data Stryker Corporation (5 millions) Sales Net incone Number of common shares (millions) Earnings before interest and tax Tax rate Book value of equity Book value interest-bearing debt Indicators of Value Price/earnings (X) HV firm/EBIT(1 Tax rate) (X) HV firm/sales (X) MV equity/av equity (X) HV tir/BV tirn (X) Indication Priceleamings (X) MV frm/EBIT(1-Tax rate) (X) MV firm/sales (X) MV equity BV equity (X) MV firm/BV frm (XX) 10,321 1,615 Stylar's implied stock value 362 2,215 26.201 9,112 2,790 Stryker 17.8 18.7 3.5 3.3 2.0 BAX 18.4 23.0 3.1 5.3 Box 24.6 23.9 3.1 4.2 2.3 MV-Market value; BV Book value. Market value is estimated as book value of interest-bearing debt+market value of equity Note: Round your Intermediate calculations to 1 decimal place. Round your final answers to 2 decimal places. .COM 20.5 20.5 3.5 3.3 2.6 NOT 14.2 17.2 4.4 .3 1.0 ANN 22.5 24.8 4.3 4.5 3.6 STJ 23.4 26.3 5.2 4.4 2.1 ZHE 20.8 21.5 3.8 2.5 1.0
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education