The stock price of Boeing is $104.03. The stock price of Apple is $112.43.Type the number that corresponds to the true statement:0: Boeing will have a higher weight than Apple in the S&P 500 Index.1: Boeing will have a lower weight than Apple in the S&P 500 Index.2: There is not enough information to answer the question.3: Both will have the same weight in the S&P 500 Index.

Weight in index can be calculated by market capitalization of stock and total market capitalization…

The stock price of Boeing is $104.03. The stock price of Apple is Type the number that corresponds to the true statement: 0: Boeing will have a higher weight than Apple in the S&P 500 Ind 1: Boeing will have a lower weight than Apple in the S&P 500 Ind 2: There is not enough information to answer the question.

The stock price of Boeing is $104.03. The stock price of Apple is Type the number that corresponds to the true statement: 0: Boeing will have a higher weight than Apple in the S&P 500 Ind 1: Boeing will have a lower weight than Apple in the S&P 500 Ind 2: There is not enough information to answer the question.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

See similar textbooks

Similar questions

An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $77 billion, pays a relatively high dividend with little increase in earnings, and has a P/E ratio of 1212. Stock Y has a market capitalization of $6464 billion but does not currently pay a dividend. Stock Y has a P/E ratio of 3939. Stock Z, a housing industry company, has a market capitalization of $804804 million and a P/E of 1717. a. Classify these stocks according to their market capitalizations. b. Which of the three would you classify as a growth stock? Why? c. Which stock would be most appropriate for an aggressive investor? d. Which stock would be most appropriate for someone seeking a combination of safety and earnings? Question content area bottom Part 1 a. Stock X is classified as a (1) stock. (Select from the drop-down menu.) Part 2 Stock Y is classified as a (2) stock. (Select from the drop-down menu.) Part 3 Stock Z is…
The Standard and Poor's 500 is an index that include 500 of the best US companies and is based on the price of the stocks of said companies. Select one: True False
Ralph is constructing a price-weighted index. On March 1, 2XX1, he has the following stocks in the index: Company Share price # shares outstanding Walmart $42.6 26,000 Kmart $18.76 19,000 Venture $55.11 63,000 Macy’s $39.61 45,000 What is the price-weighted index on March 1, 2XX1? (Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.167))
An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $7 billion, pays a relatively high dividend with little increase in earnings, and has a P /E ratio of 11. Stock Y has a market capitalization of $62 billion but does not currentlypay a dividend. StockY has a P /E ratio of 39. Stock Z, a housing industry company, has a market capitalization of $800 million and a P /E of 18.a.Classify these stocks according to their market capitalizations.b.Which of the three would you classify as a growth stock? Why?c.Which stock would be most appropriate for an aggressive investor?d.Which stock would be most appropriate for someone seeking a combination of safety and earnings?
Delta Ltd was recently listed on the stock exchange for $30 and with an EPS of $0.50. Given the industry,to which Delta Ltd belongs has a required return on equity of around 12%, an average retention ratio of 30%, ROE of 15%, which of the following statement is most accurate? A.The industry P/E based on fundamentals is around 9.8, which means that shares in Delta are overpriced. B. Shares in Delta is correctly priced. C. Compared to the industry average Delta must have a increasing ROE and decreased retention ratio and decreased required of return. D. The industry P/E based on fundamentals is around 14.2 which means that shares in Delta are overpriced. E. None of the options provided.
1, Whats the difference is between common and preferred stock. If you were an investor, which type of stock wouldyou prefer? why? 2. According to the information provided by S&P, share buybacks totaled $198.7 billion in Q1 2020, but then the process slowed down. Among the companies, there were Apple, T-Mobile, Alphabet, and Microsoft. In your opinion, what arethe reasons companies buy their shares back? Does the COVID-19 pandemic influence their decision?
Yesterday at the market close, the stock of Kevin Spellman, Inc. was trading at $100 per share and there were 500,000 shares outstanding. This morning before the market opened, Kevin Spellman, Inc. announced that it was doing a 5:1 stock split. Under the efficient market hypothesis and with no new information, what will be the new stock price in dollars per share?
Mayo Inc.'s perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual dividend. What is the company's cost of preferred stock for use in calculating the WACC? The question does not have a flotation cost. How would I solve the problem with this information?
Hackworth Co. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $3 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 10. What is the estimated intrinsic value of Hackworth Co.’s stock per share? Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic value per share of the firm. Suppose you have the information given in the following table for Company X. Year 1 Year 2 EBITDA $7,650 $9,150 Total value of equity $76,500 $82,500 Total firm value $99,450 $132,000 What is value of the entity multiple of Company X in Year 1?
Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors’ required rate of return in 10 percent, what is the market value of shares? If the required return declines 6 percent, what is the change in the price of stock? Could you not use excel as im not familair with it yet. Just simple equations please
ou were hired as a consultant to XYZ Company, whose target capital structure is 32% debt, 11% preferred, and 57% common equity. The interest rate on new debt is 7.60%, the yield on the preferred is 4.20%, the cost of common from retained earnings is 16.15%, and the tax rate is 36.00%. The firm will not be issuing any new common stock. What is XYZ's WACC?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. Group of answer choices 10.21% 12.68% 13.69% 11.22% 13.58%
A company expects EPS to be $2.52 next year. The industry average P/E ratio is 23.99 and Enterprise multiple is 7.57. The EBITDA for the company is $22.97 million. What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places.