Using the P/E multiples approach to valuation, what is the estimated price of a stock if the firm's P/E ratio 18.2 and its earnings are $452,000? Assume that there are 100,000 shares of stock outstanding. is
Using the P/E multiples approach to valuation, what is the estimated price of a stock if the firm's P/E ratio 18.2 and its earnings are $452,000? Assume that there are 100,000 shares of stock outstanding. is
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 2MAD
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Financial accounting 2
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
18.2 and its earnings are
$452,000? Assume that there are
100,000 shares of stock outstanding.
is
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