Expected Company P/E Ratio Beta Payout Growth Boeing 17.3 3.50% 1.1 28% General 15.5 11.50% 1.25 40% Dynamics General Motors 16.5 13.00% 0.85 41% - Hughes Grumman 11.4 10.50% 0.8 37% Lockheed 10.2 9.50% 0.85 37% Corporation Logicon 12.4 14.00% 0.85 11% Loral 13.3 16.50% 0.75 23% Corporation Martin Marietta 11 8.00% 0.85 22% McDonnell 22.6 13.00% 1.15 37% Douglas Northrop 9.5 9.00% 1.05 47% Raytheon 12.1 9.50% 0.75 28% Rockwell 13.9 11.50% 1 38% Thiokol 8.7 5.50% 0.95 15% United 10.4 4.50% 0.7 50% Industrial Estimate a PE regression with all companion variables as independent variables. What is the coefficient estimate O 35.74 O 11.97 O 2.90 O -2.33

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
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Expected
Company
P/E Ratio
Beta Payout
Growth
Boeing
17.3
3.50%
1.1
28%
General
15.5
11.50%
1.25
40%
Dynamics
General Motors
16.5
13.00%
0.85
41%
- Hughes
Grumman
11.4
10.50%
0.8
37%
Lockheed
10.2
9.50%
0.85
37%
Corporation
Logicon
12.4
14.00%
0.85
11%
Loral
13.3
16.50%
0.75
23%
Corporation
Martin Marietta 11
8.00%
0.85
22%
McDonnell
22.6
13.00%
1.15
37%
Douglas
Northrop
9.5
9.00%
1.05
47%
Raytheon
12.1
9.50%
0.75
28%
Rockwell
13.9
11.50%
1
38%
Thiokol
8.7
5.50%
0.95
15%
United
10.4
4.50%
0.7
50%
Industrial
Estimate a PE regression with all companion variables as independent variables. What is the coefficient estimate
O 35.74
O 11.97
O 2.90
O -2.33
Transcribed Image Text:Expected Company P/E Ratio Beta Payout Growth Boeing 17.3 3.50% 1.1 28% General 15.5 11.50% 1.25 40% Dynamics General Motors 16.5 13.00% 0.85 41% - Hughes Grumman 11.4 10.50% 0.8 37% Lockheed 10.2 9.50% 0.85 37% Corporation Logicon 12.4 14.00% 0.85 11% Loral 13.3 16.50% 0.75 23% Corporation Martin Marietta 11 8.00% 0.85 22% McDonnell 22.6 13.00% 1.15 37% Douglas Northrop 9.5 9.00% 1.05 47% Raytheon 12.1 9.50% 0.75 28% Rockwell 13.9 11.50% 1 38% Thiokol 8.7 5.50% 0.95 15% United 10.4 4.50% 0.7 50% Industrial Estimate a PE regression with all companion variables as independent variables. What is the coefficient estimate O 35.74 O 11.97 O 2.90 O -2.33
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