At the end of 2012, Tootsie Roll had a price- earnings ratio of 30.7, and Hershey had a price- earnings ratio of 25.3. These convert to capitalization rates of 3.25% for Tootsie Roll and 3.95% for Hershey. Given that the 30- year bond rate at the end of 2012 was about 3.0%, how might you explain the difference between the capitalization rates of these two companies in terms of the buildup criteria set forth in the chapter?
Answer to relevant QuestionsObtain IRS Revenue Ruling 59– 60 through the IRS web site. Read this Ruling and prepare a memo to your professor explaining how each of its eight valuation factors fits into the theory of business valuation as discussed in ...Identify and discuss three commonly employed indirect methods under the cash flow approach.What are the three primary components of the process of a computer forensics investigation?Identify five factors that should be considered when selecting an indirect method of proof.What three types of communications between the expert and engaging counsel are discoverable by opposing counsel?
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