Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food busi
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food busi
Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food business and lower its risks. It is examining three companies-a gourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following represents information about all the companies. Corpany Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company Correlation with Treynor Pie Company + 1.0 + 0.4 + 0.3 0.5 Sales (5 millions) $ 189 63 57 76 Expected Earnings ($ millions) $8 7 4 5 Standard Deviation in Earnings (5 millions) $ 2.0 1.4 1.6 3.3 0-1. Compute the coefficient of variation for each of the four companies (Enter your answers in millions (e.g., $100,000 should be entered as "10"). Round your answers to 3 decimal places.) Coefficient of Variation Treynor Ple Company Gourmet restaurant Baby food company Nutritional products company
Treynor Pie