10. Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan, that trades on...

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10. 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 value Stryker's common stock as of December 31, 2013. page 382 Sales Net income Number of common shares (millions) Earnings before interest and tax Tax rate Book value of equity Book value interest-bearing debt Stryker Corp. ($ millions) Stryker BAX BDX COV MDT SNN STJ ZMH Comparison of Stryker with comparable companies: 5-year growth rate in sales (%) 6.1 4.3 2.4 0.6 4.2 2.7 4.7 2.9 5-year growth rate in EPS (%) 8.4 3.0 0.9 3.5 11.6 7.7 17.8 4.5 Analysts' projected growth (%) 9.1 8.0 9.0 NA 6.6 9.9 10.7 8.4 Interest coverage ratio (X) 15.6 12.2 7.8 10.8 12.0 81.2 10.7 15.0 Total liabilities to assets (%) 42.5 67.2 58.5 53.6 46.4 30.5 57.0 34.2 Total assets ($ millions) 15,743 25,869 12,035 19,619 37,231 5,819 10,248 9,581 Indicators of Value Price/earnings (X) 17.8 18.8 23.1 20.3 15.8 23.2 24.6 20.8 MV firm/EBIT(1-Tax rate) (X) 18.5 21.7 23.9 20.5 17.7 23.5 28.1 21.5 MV firm/sales (X) 3.5 3.1 3.1 3.5 4.1 3.0 3.9 3.8 MV equity/BV equity (X) 3.1 4.5 4.2 3.3 2.9 3.2 4.1 2.5 MV firm/BV firm (X) 2.0 1.8 2.1 1.8 1.8 2.3 2.1 1.8 MV = Market value; BV = Book value. Market value is estimated as book value of interest-bearing debt + market value of equity. 9,021 1,616 378 2,163 22.3% 9,047 2,764 10. 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 value Stryker's common stock as of December 31, 2013. page 382 Sales Net income Number of common shares (millions) Earnings before interest and tax Tax rate Book value of equity Book value interest-bearing debt Stryker Corp. ($ millions) Stryker BAX BDX COV MDT SNN STJ ZMH Comparison of Stryker with comparable companies: 5-year growth rate in sales (%) 6.1 4.3 2.4 0.6 4.2 2.7 4.7 2.9 5-year growth rate in EPS (%) 8.4 3.0 0.9 3.5 11.6 7.7 17.8 4.5 Analysts' projected growth (%) 9.1 8.0 9.0 NA 6.6 9.9 10.7 8.4 Interest coverage ratio (X) 15.6 12.2 7.8 10.8 12.0 81.2 10.7 15.0 Total liabilities to assets (%) 42.5 67.2 58.5 53.6 46.4 30.5 57.0 34.2 Total assets ($ millions) 15,743 25,869 12,035 19,619 37,231 5,819 10,248 9,581 Indicators of Value Price/earnings (X) 17.8 18.8 23.1 20.3 15.8 23.2 24.6 20.8 MV firm/EBIT(1-Tax rate) (X) 18.5 21.7 23.9 20.5 17.7 23.5 28.1 21.5 MV firm/sales (X) 3.5 3.1 3.1 3.5 4.1 3.0 3.9 3.8 MV equity/BV equity (X) 3.1 4.5 4.2 3.3 2.9 3.2 4.1 2.5 MV firm/BV firm (X) 2.0 1.8 2.1 1.8 1.8 2.3 2.1 1.8 MV = Market value; BV = Book value. Market value is estimated as book value of interest-bearing debt + market value of equity. 9,021 1,616 378 2,163 22.3% 9,047 2,764