Everett Industries has a price-to-earnings ratio of 15.3-to-1. Stanton Corp. has recently reported earnings per share of $3.42. What is the price per share of Stanton Corp. according to the comparable multiples approach?

Everett Industries has a price-to-earnings ratio of 15.3-to-1. Stanton Corp. has recently reported earnings per share of $3.42. What is the price per share of Stanton Corp. according to the comparable multiples approach?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Question

What is the price per share of Stanton corp. according to the comparable multiples approach for this financial accounting question?

Everett Industries has a price-to-earnings ratio of 15.3-to-1. Stanton
Corp. has recently reported earnings per share of $3.42. What is the
price per share of Stanton Corp. according to the comparable
multiples approach?

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