Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Company wants to value its company using the multiples method, based on ABC's earnings and on the average P / E Ratio of 3

ABC Company wants to value its company using the multiples method, based on ABC's earnings and on the average P/E Ratio of 3 public companies. Use the information below to calculate the value of ABC Company. Do not include "$" in the answerfor example, $123,456 would be entered as 123456.
ABC Net Profit $5,583,490
P/E Ratio
Public Company 114.6
Public Company 212.5
Public Company 310.4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Finance

Authors: Alan Parkinson

1st Edition

0750618264, 978-0750618267

More Books

Students also viewed these Finance questions

Question

What information remains to be obtained?

Answered: 1 week ago

Question

How reliable is this existing information?

Answered: 1 week ago

Question

How appropriate would it be to conduct additional research?

Answered: 1 week ago