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In: Accounting

1. Use PE ratios to recommend a stock. Use expected growth and standard deviation to facilitate...

1. Use PE ratios to recommend a stock. Use expected growth and standard deviation to facilitate that recommendation.

Company Name                        PE                       Expected Growth       Standard Deviation

Coca-Cola Bottling                         29.18         9.50%                          20.58%     

Molson Inc. Ltd. 'A'                       43.65         15.50%                        21.88%     

Anheuser-Busch                             24.31         11.00%                        22.92%     

Corby Distilleries Ltd.                   16.24         7.50%                          23.66%     

Chalone Wine Group                     21.76         14.00%                        24.08%     

Andres Wines Ltd. 'A'                      8.96        3.50%                          24.70%     

Todhunter Int'l                              8.94           3.00%                          25.74%     

Brown-Forman 'B'                         10.07         11.50%                        29.43%     

Coors (Adolph) 'B'                          23.02         10.00%                        29.52%     

PepsiCo, Inc.                                                    33.00         10.50%                        31.35%     

Coca-Cola                                                         44.33         19.00%                        35.51%     

Boston Beer 'A'                             10.59         17.13%                        39.58%     

Whitman Corp.                              25.19         11.50%                        44.26%     

Mondavi (Robert) 'A'                    16.47         14.00%                        45.84%     

Coca-Cola Enterprises                   37.14         27.00%                        51.34%

Hansen Natural Corp                    9.70          17.00%                        62.45%                       

Solutions

Expert Solution

notes

PEG. Is the price earning ratio by growth

PERG. Is the PE ratio by both growth and risk

Standard deviation indicates risk

I recommended as rank wise stocks more attractive

If PERG is lower the stock is more attractive

ekkarill92 answered 1 year ago
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