Answered: 1) After you estimate an industry…

1) After you estimate an industry earnings multiplier , how do you determine if the industry's multiplier is relatively high or low ?

Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter1: Exploring The World Of Business And Economics

Section: Chapter Questions

Problem 16CC

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Question

1) After you estimate an industry earnings multiplier , how do you determine if the industry's multiplier is relatively high or low ? 2) What are the five basic competitive forces that determine the intensity of competition in an industry and thus , its rate of return on capital?

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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