Question
(3-4) You have the following information on Pfizer (PFE) and Johnson & Johnson (JNJ): PFE: P-E (which is Price/EPS) = 28.05 JNJ: EPS = 5.49
(3-4) You have the following information on Pfizer (PFE) and Johnson & Johnson (JNJ): PFE: P-E (which is Price/EPS) = 28.05 JNJ: EPS = 5.49
a. Using Pfizer as a comparable, estimate JNJs price: ______________ b. The current price of JNJ is about $115.48 per share. How does your estimate compare to the current price (high, low or about the same)? ___________________________
c. What is one problem with using a comparable (such as Pfizer) to estimate the price of another firm (such as JNJ)?
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Offshore Finance And State Power
Authors: Andrea Binder
1st Edition
0192870122, 978-0192870124
