j. Now determine a range of values for Edelmans stock price, with 400,000 shares outstanding, by applying
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j. Now determine a range of values for Edelman’s stock price, with 400,000 shares outstanding, by applying Kennedy’s and Strasburg’s P/E ratios, price/dividends ratios, and price/book value ratios to your data for Edelman. For example, one possible price for Edelman’s stock is (P/E Kennedy)(EPS Edelman) = 8($3) = $24 per share. Similar calculations would produce a range of prices based on both Kennedy’s and Strasburg’s data. (Hint: Our range was $24 to $27.)
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Financial Management Theory And Practice
ISBN: 9781439078105
13th Edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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