10. You are estimating the price/earnings multiple to use to value Paramount Corporation, by looking at the average price/earnings multiple of comparable firms. The following are the price/earnings ratios of firms in the entertainment business. A. What is the average P/E ratio? B. Would you use all the comparable firms in calculating the average? Why or why not? C. What assumptions are you making when you use the industry-average P/E ratio to value Paramount Communications? 10. You are estimating the price/earnings multiple to use to value Paramount Corporation, by looking at the average price/earnings multiple of comparable firms. The following are the price/earnings ratios of firms in the entertainment business. A. What is the average P/E ratio? B. Would you use all the comparable firms in calculating the average? Why or why not? C. What assumptions are you making when you use the industry-average P/E ratio to value Paramount Communications