Question: Any help with these problems would be great Thank you in advance. QUESTION 31 The following financial information is given for Du Pont and Dow

 Any help with these problems would be great Thank you in

Any help with these problems would be great Thank you in advance.

advance. QUESTION 31 The following financial information is given for Du Pont

QUESTION 31 The following financial information is given for Du Pont and Dow for fiscal year 2001: Du Pont Dow Closing Stock Price, Feb. 15, 2002 44.90 30.57 EPS (actual for 2001) 4.50 -0.46 EPS (forecast for 2002) 1.60 0.52 Dividend per share 1.40 1.34 5 year forecast earnings growth rate 10.2% 10.0% Intrinsic value per share 103.84 33.38 Given the Feb. 15 stock prices, Du Pont & Dow have PE ratios (based on year-ahead EPS forecast) of: 28.06 & 66.46, respectively b 9.98 & 58.79, . respectively c 28.06 & 58.79, . respectively d 32.07 & 22.81, . respectively a . QUESTION 32 Following Question 31, given the Feb. 15 stock prices, Du Pont & Dow have dividend yields of: a . 3.12% & 4.38%, respectively b 3.56% & 1.70%, . respectively c 31.11% & 2.58%, . respectively d 13.72% & 13.40%, . respectively QUESTION 33 Following Question 31, given the Feb. 15 stock prices, PE based on actual EPS & 5-year-ahead earnings forecast, Du Pont has a PEG of: 2.7 5 b 4.4 . 0 c 0.9 . 8 d 3.1 . 4 a . QUESTION 34 Following Question 31, based on PEG, which company seems to be the better investment opportunity? Du Pont because the PEG is less than the benchmark cutoff of 1 b Dow because of the very high PEG a . . c Du Pont because of the very high PEG . d Dow because the PEG is less than the benchmark . cutoff of 1 QUESTION 35 Following Question 31, based on intrinsic value to share price, Du Pont and Dow are: a Both overvalued . b Both are undervalued . c Du Pont is undervalued . but Dow is overvalued Pont is overvalued but Dow is undervalued d Du . QUESTION 36 The following financial information is given for Hilton & Marriott: Hilton Marriott Closing Stock Price, October 8, 2002 EPS (actual for 2001) EPS (forecast for 2002) Dividend per share 5 year forecast earnings growth rate Common shares outstanding (thousands) Given the October 8 stock prices: 10.54 0.45 0.51 0.08 15.1% 376,025 27.46 0.92 1.83 0.28 15.7% 241,801 a . Based on either actual or forecast EPS, Marriott has a PE almost double that of Hilton b Based on actual EPS Marriott has a higher PE than Hilton . c Based on forecast EPS Marriott has a higher PE than Hilton . d Hilton s PE rises from actual to forecast because of poor performance . QUESTION 37 Following Question 36, based on the dividend yields for Hilton & Marriott: Marriott has a higher yield than Hilton at 1.0% versus 0.8% for Hilton b Both Hilton & Marriott pay out dividends higher than . actual earnings c Both are excellent fits to the Gotrocks Income Fund a . . d Hilton . has a high yield of 17.8% QUESTION 38 Following Question 36, given the October 8 stock prices, PE based on forecast EPS & 5-year-ahead earnings forecast, Hilton & Marriott have PEGs of: a . 0.70 & 1.75, respectively b 1.37 & 0.96, . respectively c 1.55 & 1.90, . respectively d 20.67 & 15.01, . respectively QUESTION 39 Following Question 36, based on PEG (using forecast EPS), which company seems to be the better investment opportunity? a Hilton because its PEG is lower than Marriott . b Marriott because of the very high PEG . c Hilton because of its very high PEG . d Marriott because the PEG is less than the benchmark . cutoff of 1 QUESTION 40 Following Question 36, which company has the higher market capitalization? a . Marriott valued at $6.64 billions versus Hilton at $3.96 billion b Hilton valued at $14.72 billion versus Marriott at $11.89 . billion c Hilton because its book value is much higher than . Marriott d Marriott because its stock price is more than twice as . high as Hilton

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