DJIA P/E: The Dow Jones Industrial Average (DJIA) is the oldest and probably the most...

70.2K

Verified Solution

Question

Accounting

DJIA P/E: The Dow Jones Industrial Average (DJIA) is the oldest and probably the most well-known stock market index. It is a price-weighted index, which means that its component stocks carry different weights proportional to their stock prices. In the following Table I have given you the investment weights for DJIA component stocks. Please use Yahoo ! Finance to find out their consensus projected EPS for Next Year and fill in the table.

stocks

Weight (%)

Projected EPS in $

Weight * EPS

MMM

5.75

AXP

3.1

AAPL

4.56

BA

5.28

CAT

3.09

CVX

3.27

CSCO

1.05

KO

1.59

DIS

4.12

DD

2.08

XOM

3.04

GE

1

GS

7.62

HD

4.71

IBM

5.98

INTC

1.15

JNJ

3.8

JPM

2.59

MCD

3.84

MRK

2.18

MSFT

1.76

NKE

4.52

PFE

1.3

PG

2.86

TRV

4.02

UTX

3.7

UNH

4.68

VZ

1.86

V

2.88

WMT

2.62

What is DJIAs EPS (please use weighted average, i.e. multiply the numbers in the second and third columns of the above table and add up.)? And what is its P/E ratio (based its closing price of 21987.56 on September 1st, 2017?

DJIA EPS (sum of the last column) =

DJIA forward P/E =

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students