6 13 S4 - HAAS SCHOOL OF BUSINESS UNIVERSITY OF CALIFORNIA...

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H AAS S CHOOL OF B USINESS U NIVERSITY OF C ALIFORNIA AT B ERKELEY UGBA 103 A VINASH V ERMA S OLUTION TO H OMEWORK 4 1.According to Table 4.7 on page 75 of the text: Ticker P 0 (Price Apr '04) EPS 1 r PVGO = P 0 - EPS 1 /r PVGO/P 0 C 48.09 3.82 .117 15.47 32% DOW 39.69 2.25 .082 12.16 31% GM 47.42 6.49 .102 -16.27 -34% JCP 33.86 1.4 .071 14.25 42% AMZN 43.60 1.14 .173 37.00 85% CSCO 20.91 0.76 .174 16.54 79% MSFT 26.13 1.22 .133 16.98 65% SBUX 38.92 0.95 .058 22.44 58 Update this table by (1) using the price on the close of business on 6/5/08 (or any other date this week so long as you specify the date), (2) looking up EPS 1 or computing it by taking trailing twelve months EPS and multiplying it by one plus the last year’s earnings growth, and (3) re-computing columns (5) and (6) assuming that r , the market capitalization rate that the text mentions in column (4) has remained unchanged. There is no single correct answer. 2.
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This note was uploaded on 02/12/2012 for the course UGBA 101A taught by Professor Mccullough during the Spring '08 term at University of California, Berkeley.

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