Given the low risk in dog food, your required rate of return on SDC is 13 percent. What P/E ratio would you apply to the firm's earnings?
Answer to relevant QuestionsWhat P/E ratio would you apply if you learned that SDC had decided to increase its payout to 50 percent? Why would you expect a relationship between economic activity and stock price movements?You are convinced that capacity utilization next year will decline from 82 percent to about 79 percent. Explain what effect that only this change will have on the operating profit margin.You are given the following estimated per share data related to the S&P Industrials Index for the year 2013:Sales .......... $1,450.00Depreciation ....... 58.00Interest expense ....... 28.00You are also informed that the ...Discuss at what stage in the industrial life cycle you would like to discover an industry. Justify your decision.
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