5. One share of Mattel (MAT) trades for $26, while Hasbro trades for $93 per share. Mattel is expected to earn $1.90 per
Posted: Thu May 19, 2022 10:13 am
5. One share of Mattel (MAT) trades for $26, while Hasbro trades for $93 per share. Mattel is expected to earn $1.90 per share next year, and has an expected forward growth rate of 10%. Hasbro is expected to earn $5.85 per share next year, and has an expected forward growth rate of 18%. Calculate the price to earnings multiple (P/E Ratio) for both companies Calculate the P.E.G. ratio for both companies. Which of the two stocks would you rather purchase? Briefly explain.