Suppose you are analyzing three firms that are operating in the following industries respectively: (1) Firm A
Question:
Suppose you are analyzing three firms that are operating in the following industries respectively:
(1) Firm A in Telecommunications Services Industry.
(2) Firm B in Telecommunications Equipment Industry, and
(3) Firm C in Computer and Network Equipment Industry.
Suppose for all three firms (A, B, and C), earnings per share is $2.
For each firm, use the multiples method and the P/E (price/earnings) ratio to estimate the price per share of Firm A, B, and C respectively.
Select an industry and provide a real-life example of two firms within the same industry with one firm at least two times larger (use revenue as the measure of size) than the other one. Report for these two firms the most recent numbers on: revenue, historical growth rate (use the past five year's revenue numbers), return on equity (ROE), return on assets (ROA), and dividend payout ratio (or dividend payment in dollars). Discuss the differences in these numbers between the two 4 firms. Use value creation concepts to support your discussion. Report the sources and dates) on which you collected information.
Marketing Research
ISBN: 9781119497639
13th Edition
Authors: V. Kumar, Robert P. Leone, David A. Aaker, George S. Day