Companies Alpha Corp. & Omega Inc. are direct competitors with the following characteristics: Alpha $45.00 200...
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Companies Alpha Corp. & Omega Inc. are direct competitors with the following characteristics: Alpha $45.00 200 million $265,000,000 $120,000,000 $1.20 1.85 Stock Price Total Shares Outstanding Annual Revenue (ttm) Net Income (ttm) Annual Dividend Beta Omega $70.00 150 million $160,000,000 $120,000,000 $0.30 1.10 a. Which company has a larger market value? Clearly show your calculations, b. Calculate the earnings per share (EPS) for each company: Alpha EPS: Omega EPS: c. Utilize the Trailing P/E ratio based on the data given above to determine which company has a cheaper relative valuation? Clearly show your calculations. d. Based solely on the information above, which company, if any, would you consider to be more risky from an investment point of view? Briefly justify your answer. Companies Alpha Corp. & Omega Inc. are direct competitors with the following characteristics: Alpha $45.00 200 million $265,000,000 $120,000,000 $1.20 1.85 Stock Price Total Shares Outstanding Annual Revenue (ttm) Net Income (ttm) Annual Dividend Beta Omega $70.00 150 million $160,000,000 $120,000,000 $0.30 1.10 a. Which company has a larger market value? Clearly show your calculations, b. Calculate the earnings per share (EPS) for each company: Alpha EPS: Omega EPS: c. Utilize the Trailing P/E ratio based on the data given above to determine which company has a cheaper relative valuation? Clearly show your calculations. d. Based solely on the information above, which company, if any, would you consider to be more risky from an investment point of view? Briefly justify your answer.
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a To calculate the market value of each company we need to multiply the stock price by the total sha... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
Posted Date:
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