Use the Following Information to Answer the Requirements Required:
A

question 28

Essay

Use the following information to answer the requirements:
$\begin{array}{|c|r|r} & \text { Company X } & \text { Company Y } \\\hline \text { Reported EPS } & \$ 15.00 & \$ 15.00 \\\hline \text { EPS decomposed: } & & \\\hline \text { Permanent } & 75 \% & 65 \% \\\hline \text { Transitory } & 20 \% & 25 \% \\\hline \text { Value-irrelevant } & 5 \% & 10 \%\end{array}$

Required:
a.Use a risk-adjusted cost of capital of 15% to calculate each firm's implied share price and earning multiples.What are the implicit share prices and earnings multiples for the two firms different?
b.Repeat requirement a.,but use a risk-adjusted cost of capital of 8% instead.

Analyze the effects of global events on financial markets and institutions.

Understand the foundations and criticisms of various personality theories.

Describe and critique the methods used to measure personality variables.

Explain the development and functions of personality structures and traits.

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Definitions:

Selling

Expenses incurred directly and indirectly in making sales, including advertising, sales commissions, and the cost of sales personnel.

Administrative Expenses

Overhead or indirect costs related to the general operation of a company, such as office supplies, legal fees, and management salaries.

Planning Budget

A financial plan that estimates the revenues and expenditures for a certain period of time in advance.

Personnel Expenses

Costs associated with employing staff, including salaries, benefits, training, and taxes.