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    Industry Analysis

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    1) Find the most recent three year financial data on US Steel, Microsoft, Disney, and Home Depot. Provide three years of ratios for each:

    Retention ratio US Steel Microsoft Disney Home Depot
    Year 1 (most current)
    Year 2
    Year 3

    Net profit margin US Steel Microsoft Disney Home Depot
    Year 1 (most current)
    Year 2
    Year 3

    Equity turnover US Steel Microsoft Disney Home Depot
    Year 1 (most current)
    Year 2
    Year 3

    Total Asset turnover US Steel Microsoft Disney Home Depot
    Year 1 (most current)
    Year 2
    Year 3

    Total Assets / Equity US Steel Microsoft Disney Home Depot
    Year 1 (most current)
    Year 2
    Year 3
    2) You are provided / estimate the following information for stock DEF. You expect to sell the stock one year from now for $26 and expect one more dividend payment before you sell.
    How much are the dividend payment and stock worth today?

    Earnings per share: this year $5.00
    Dividends per share: this year $1.50
    Estimated earnings per share: next year $6.25
    Required rate of return 10%
    Expected sales price in one year $26.00
    3) The dividend payout ratio for firm ELO is 60%, k is 13% and the expected growth of dividends is 7%.

    a) What is the current earnings multipler?

    b) You expect the payout ratio to decline to 50%, all else equal. What is the new earnings multiplier?

    c) With the payout ratio at 60%, the rate of inflation increases 3% while the growth rate increases 2%. What is the new earnings multiplier?

    d) With the payout ratio at 60%, the rate of inflation is expected to drop by 3% while the growth rate decreases by 1%. What is the new earnings multipler?

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    https://brainmass.com/business/financial-ratios/industry-analysis-282823

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    Solution Summary

    The solution has some details about some ratios for four companies, stock valuation and earnings multiplier

    $2.19

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