Question
Company A is currently selling for $130 per share and has earnings of $13 per share. Company B is privately held with no market price
Company A is currently selling for $130 per share and has earnings of $13 per share. Company B is privately held with no market price and has earnings of $7 per share. Based on a P/E multiples valuation, Calculate what would be the expected price of a share of Company B stock?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
