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Consider the information below for these 4 competing firms. Using the Market/Book multiple (market value of equity per share, divided by book value of equity
Consider the information below for these 4 competing firms. Using the Market/Book multiple (market value of equity per share, divided by book value of equity per share), the price per share for Stock B should be $______.
Company A | Company B | Company C | Company D | |
Sales | $124 mill. | $127 mill. | $398 mill. | $206 mill. |
Owners' Equity | $28 mill. | $22 mill. | $33 mill. | $26 mill. |
# shares outstanding | 1.5 mill. | 1.7 mill. | 1.8 mill. | 1.3 mill. |
Stock Price | $65 | ? | $98 | $80 |
Margin of error for correct responses: +/- $.10.
Rounding and Formatting instructions: Do not enter dollar signs or commas in your response. Do not round any intermediate work, but round your *final* response to 2 decimal places (example: if your answer is $12.34567, you should enter 12.35).
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