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MTB Surfboards has a P/E of 20. The discount rate for this firm is 30 percent. They had earnings of $ 2,000,000 and 100,000 shares of common stock outstanding. What should be the current price of the stock? $60 $120 $200 $400 $600

MTB Surfboards has a P/E of 20. The discount rate for this firm is 30 percent. They had earnings of $ 2,000,000 and 100,000 shares of common stock outstanding. What should be the current price of the stock? $60 $120 $200 $400 $600

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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MTB Surfboards has a P/E of 20. The discount rate for this firm is 30 percent. They had earnings of $ 2,000,000 and 100,000 shares of common stock outstanding. What should be the current price of the stock? $60 $120 $200 $400 $600
Transcribed Image Text:MTB Surfboards has a P/E of 20. The discount rate for this firm is 30 percent. They had earnings of $ 2,000,000 and 100,000 shares of common stock outstanding. What should be the current price of the stock? $60 $120 $200 $400 $600
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