he sales and profit margin of ABC Co. for 2020 were P500,000 and 15% respectively. Analysts project the sales to grow by 12% in 2021. However, because of more competition, the profit margin is expected to decline by 10% for 2021. The expected P/E multiple for the year 2021 is 22. ABC Co. has 20,000 shares outstanding. Using the earnings multiplier model, the expected price per share of ABC Co. in the year 2021 must be nearest to ₱61.60 ₱74.25 ₱82.5 ₱83.16

he sales and profit margin of ABC Co. for 2020 were P500,000 and 15% respectively. Analysts project the sales to grow by 12% in 2021. However, because of more competition, the profit margin is expected to decline by 10% for 2021. The expected P/E multiple for the year 2021 is 22. ABC Co. has 20,000 shares outstanding. Using the earnings multiplier model, the expected price per share of ABC Co. in the year 2021 must be nearest to ₱61.60 ₱74.25 ₱82.5 ₱83.16

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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