Financial Accounting Question please answer the question On a particular date, Microsoft has a stock price of$420.30 and an EPS of $11.20. Its competitor, Google,had an EPS of $2.45. What would be the expected priceof Google stock on this date, if estimated using themethod of comparables?A) $91.82B) $78.45C) $82.56D) $95.30

Step 1: Given Value for Calculation Current Price of Stock of Microsoft = pm = $420.30Earning Per…

Answered: On a particular date, Microsoft has a…

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter9: Stocks And Their Valuation

Section: Chapter Questions

Problem 1TCL

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On a particular date, Microsoft has a stock price of $420.30 and an EPS of $11.20. Its competitor, Google, had an EPS of $2.45. What would be the expected price of Google stock on this date, if estimated using the method of comparables? A) $91.82 B) $78.45 C) $82.56 D) $95.30