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
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
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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Transcribed Image Text: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
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