Question: PLEASE ANSWER ALL QUESTIONS You are given the three EPS estimates and the following estimates related to the maket earnings multiple: a. Based on the
You are given the three EPS estimates and the following estimates related to the maket earnings multiple: a. Based on the three LPS and P/E estimates, compute the high, low, and consensus intrinsc market value for the 58P industrials index in 2010. Do not round intermediate caloulations. Round vour answers to the nearest cent. High intrinsic market value: $ Low intrinje market valueis Consensus intrinsk market valuel s b. Assuming that the SsP Industriais Index at the beginning of the year was priced at 2,250 , compute your estimated rate of return under the three scenarios from Part a. Do not rownd intermediate calculations. Round your answers to one decimal place. Use a minus nign to enter negative rates of return, if any. Rate of return (optimistic scenario): Rate of return (pessimistic scenario): Rate of retum (consensus scenario): Assuming your required rate of return is equal to the consensus, how would you weight the S8P industrials Index in your global portfolio? One should the U.S. stocks in a global portfolio
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