Using the P/E multiples approach to valuation, what is the estimated price of a stock if the firm's P/E ratio is 18.2 and its earnings are $452,000? Assume that there are 100,000 shares of stock outstanding.
Using the P/E multiples approach to valuation, what is the estimated price of a stock if the firm's P/E ratio is 18.2 and its earnings are $452,000? Assume that there are 100,000 shares of stock outstanding.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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Transcribed Image Text:Using the P/E multiples approach to
valuation, what is the estimated
price of a stock if the firm's P/E ratio
is 18.2 and its earnings are
$452,000? Assume that there are
100,000 shares of stock outstanding.
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