Question

1. 
   The following financial information is given for Hilton & Marriott:

   	Hilton	Marriott
   Closing Stock Price, October 8, 2002	10.54	27.46
   EPS (actual for 2001)	0.45	0.92
   EPS (forecast for 2002)	0.51	1.83
   Dividend per share	0.08	0.28
   5 year forecast earnings growth rate	15.1%	15.7%
   Common shares outstanding (thousands)	376,025	241,801

   Given the October 8 stock prices:

   	a.	Based on actual EPS Marriott has a higher PE than Hilton
   	b.	Based on either actual or forecast EPS, Marriott has a PE almost double that of Hilton
   	c.	Based on forecast EPS Marriott has a higher PE than Hilton
   	d.	Hilton s PE rises from actual to forecast because of poor performance

1 points   

QUESTION 37

1. Following Question 36, based on the dividend yields for Hilton & Marriott:

   	a.	Both Hilton & Marriott pay out dividends higher than actual earnings
   	b.	Both are excellent fits to the Gotrocks Income Fund
   	c.	Marriott has a higher yield than Hilton at 1.0% versus 0.8% for Hilton
   	d.	Hilton has a high yield of 17.8%

1 points   

QUESTION 38

1. Following Question 36, given the October 8 stock prices, PE based on forecast EPS & 5-year-ahead earnings forecast, Hilton & Marriott have PEGs of:

   	a.	1.55 & 1.90, respectively
   	b.	20.67 & 15.01, respectively
   	c.	1.37 & 0.96, respectively
   	d.	0.70 & 1.75, respectively

1 points   

QUESTION 39

1. Following Question 36, based on PEG (using forecast EPS), which company seems to be the better investment opportunity?

   	a.	Marriott because of the very high PEG
   	b.	Hilton because its PEG is lower than Marriott
   	c.	Hilton because of its very high PEG
   	d.	Marriott because the PEG is less than the benchmark cutoff of 1

1 points   

QUESTION 40

1. Following Question 36, which company has the higher market capitalization?

   	a.	Marriott because its stock price is more than twice as high as Hilton
   	b.	Hilton valued at $14.72 billion versus Marriott at $11.89 billion
   	c.	Marriott valued at $6.64 billions versus Hilton at $3.96 billion
   	d.	Hilton because its book value is much higher than Marriott

Answer 1

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NO Haroiof P oralio 183 /5.0 PEG e1akio P/E oratio Helton PEG Ratio Grooth rate 20. 3 16. Haoviof PEG vrato 15 O.96 Hanb ap Hitonmanket Cap tahonding hae x price /ahane NO 3 605 X 10.54 39633035 3 96 ion Maviot manke cap 241801 X 2746 66 39855 4

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