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Prepare a table listing the variables that influence the earnings multiplier

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Prepare a table listing the variables that influence the earnings multiplier for your chosen;industry and the market index series for the most recent 10 years.;a. Do the average dividend-payout ratios for your industry and the market index differ?;How should the dividend payout influence the difference between the multipliers?;b. Based on the fundamental factors, would you expect the risk for this industry to differ;from that for the market? In what direction, and why? Calculate the industry beta;using monthly data for five years. Based on the fundamental factors and the computed;systematic risk, how does this industry?s risk compare to the market? What effect will;this difference in risk have on the industry multiplier relative to the market multiplier?;c. Analyze and discuss the different components of growth (retention rate, total asset;turnover, total assets/equity, and profit margin) for your chosen industry and a market;index during the most recent 10 years. Based on this analysis, how would you expect;the growth rate for your industry to compare with the growth rate for the market index?;How would this difference in expected growth affect the multiplier?;this question is from chapter 13 in textbook: investment analysis and portfolio management

 

Paper#25915 | Written in 18-Jul-2015

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