Suppose the Earnings Multiple of the comparable firms is 10.5 and the next year projected net income of Firm X is $990 million, what is the terminal value for Firm X based on the earnings multiple approach? O a. $9812 b. $10395 O c. $12945 O d. $12815

Suppose the Earnings Multiple of the comparable firms is 10.5 and the next year projected net income of Firm X is $990 million, what is the terminal value for Firm X based on the earnings multiple approach? O a. $9812 b. $10395 O c. $12945 O d. $12815

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

Problem 1PS

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Question

Suppose the Earnings Multiple of the comparable firms is 10.5 and the next year projected net income of Firm X
is $990 million, what is the terminal value for Firm X based on the earnings multiple approach?
O a. $9812
O b.
$10395
O c. $12945
O d. $12815

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