You notice that Coca-Cola has a stock price of $41.09 and an EPS of $1.89. Its competitor PepsiCo has an EPS of $3.90. But, Jones Soda, a small batch Seattle-based soda producer has a P/E ratio of 35. Based on this information, what is one estimate of the value of a share of PepsiCo stock?

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
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General accounting

You notice that Coca-Cola has a stock price of $41.09 and an
EPS of $1.89. Its competitor PepsiCo has an EPS of $3.90. But,
Jones Soda, a small batch Seattle-based soda producer has a
P/E ratio of 35.
Based on this information, what is one estimate of the value
of a share of PepsiCo stock?
Transcribed Image Text:You notice that Coca-Cola has a stock price of $41.09 and an EPS of $1.89. Its competitor PepsiCo has an EPS of $3.90. But, Jones Soda, a small batch Seattle-based soda producer has a P/E ratio of 35. Based on this information, what is one estimate of the value of a share of PepsiCo stock?
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