Firm A has a price-to-earnings ratio of 12.7-to-1. Firm B has recently reported earnings per share of $2.98. What is the price per share of Firm B according to the comparable multiples approach? A. $4.26 B. $12.70 C. $37.85 D. $0.24

Firm A has a price-to-earnings ratio of 12.7-to-1. Firm B has recently reported earnings per share of $2.98. What is the price per share of Firm B according to the comparable multiples approach? A. $4.26 B. $12.70 C. $37.85 D. $0.24

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...

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Question

Financial Accounting Question please answer

Firm A has a price-to-earnings ratio of 12.7-to-1. Firm B has
recently reported earnings per share of $2.98. What is the
price per share of Firm B according to the comparable
multiples approach?
A. $4.26
B. $12.70
C. $37.85
D. $0.24

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