please estimate Company D's share price. Also, if the company has 1,000,000 outstanding shares, what is the company's equity value?

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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13

You are assigned to perform a
business valuation. You are
required to use the market
multiple valuation method. Below
is the comparable table, and
please estimate Company D's
share price. Also, if the company
has 1,000,000 outstanding
shares, what is the company's
equity value?
Share Price EPS Sales
A $45 20 $15M
B $55 25 $20M
C $60 35 $35M
D ? 15 $14M
Transcribed Image Text:You are assigned to perform a business valuation. You are required to use the market multiple valuation method. Below is the comparable table, and please estimate Company D's share price. Also, if the company has 1,000,000 outstanding shares, what is the company's equity value? Share Price EPS Sales A $45 20 $15M B $55 25 $20M C $60 35 $35M D ? 15 $14M
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