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 of stock 100,000 shares outstanding.

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
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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
of stock
100,000 shares
outstanding.
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 of stock 100,000 shares outstanding.
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