Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan, that trades on the New York
Stock Exchange. Use the following information on Stryker and seven other similar companies (indicated by their ticker symbols) to
calculate Stryker's implied stock value using each of the 5 indicators of value provided in the chart below Use the mean values for the
7 other similar companies in the industry as the benchmark to calculate Stryker's Implied stock value using its financial data
Stryker Corporation (5 millions)
Sales
Net Income
Number of common shares (millions)
Earnings before interest and tax
Tax rate
Book value of equity
Book value interest-bearing debt
Indicators of Value
Price/earnings (X)
My firm/EBIT(1- Tax rate) (X)
MV firm/sales (X)
MV equity/BV equity (X)
HV Firm/BV firm (X)
Indicators
Pricelearnings X)
MV fem/EBIT(1-Tax rate) (X)
MV firmsales (X)
MV equity EV equity (X)
MV fim/BV 6mm (X)
9,621
1,662
Stryker's implied
stock value
355
2,187
24.10%
9,077
2,776
Stryker
17.8
18.3
3.5
3.2
2.0
BAX
17.6
22,3
3.1
4.6
1.8
BOX
23.7
22.5
3.1
4.2
2.1
cov
MV Market value, BV Book value. Market value is estimated as book value of interest-bearing debt market value of equity.
Note: Round your Intermediate calculations to 1 decimal place. Round your final answers to 2 decimal places.
20.3
20.5
3.5
3.3
1.9
HOT
13.5
16.5
4.3
2.9
SAN
21.0
24.1
3.6
3.8
513
22.7
25.6
4,5
1.7
2MH
20.0
21.5
3.8
2.5
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Transcribed Image Text:Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan, that trades on the New York Stock Exchange. Use the following information on Stryker and seven other similar companies (indicated by their ticker symbols) to calculate Stryker's implied stock value using each of the 5 indicators of value provided in the chart below Use the mean values for the 7 other similar companies in the industry as the benchmark to calculate Stryker's Implied stock value using its financial data Stryker Corporation (5 millions) Sales Net Income Number of common shares (millions) Earnings before interest and tax Tax rate Book value of equity Book value interest-bearing debt Indicators of Value Price/earnings (X) My firm/EBIT(1- Tax rate) (X) MV firm/sales (X) MV equity/BV equity (X) HV Firm/BV firm (X) Indicators Pricelearnings X) MV fem/EBIT(1-Tax rate) (X) MV firmsales (X) MV equity EV equity (X) MV fim/BV 6mm (X) 9,621 1,662 Stryker's implied stock value 355 2,187 24.10% 9,077 2,776 Stryker 17.8 18.3 3.5 3.2 2.0 BAX 17.6 22,3 3.1 4.6 1.8 BOX 23.7 22.5 3.1 4.2 2.1 cov MV Market value, BV Book value. Market value is estimated as book value of interest-bearing debt market value of equity. Note: Round your Intermediate calculations to 1 decimal place. Round your final answers to 2 decimal places. 20.3 20.5 3.5 3.3 1.9 HOT 13.5 16.5 4.3 2.9 SAN 21.0 24.1 3.6 3.8 513 22.7 25.6 4,5 1.7 2MH 20.0 21.5 3.8 2.5
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