Question
A firms P/E ratio is estimated to be 8 and the EPS is estimated to be $5.25. What is the estimate of the price of
A firms P/E ratio is estimated to be 8 and the EPS is estimated to be $5.25. What is the estimate of the price of the firms stock?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To estimate the price of the firms stock we can use the PE ratio formula PE ratio Price ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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Get StartedRecommended Textbook for
Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
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