Question
ABC Corp. has earnings of $1.32 per share. XYZ Corp. is a close competitor, with $1.48 earnings per share. If XYZ stock is currently trading
ABC Corp. has earnings of $1.32 per share. XYZ Corp. is a close competitor, with $1.48 earnings per share. If XYZ stock is currently trading at $29.60 and you believe that the stocks are comparable, what would be a reasonable price expectation for ABC stock?
a.
$29.60
b.
$26.40
c.
$35.00
d.
$28.40
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
9th Edition
0321598903, 978-0321598905
