Don't copay answers form other chgg post.

The Claremont Company is planning an initial public offering (IPO) and management would like to have an idea of an appropriate price to charge for a share of its stock.

The company plans to issue 100,000 shares. The Claremont Companys most recent earnings per share (EPS) are $1.25; however, the consensus forecast among analysts who follow the company is for EPS to be $1.50.

The EPS and share price of four comparable firms are shown below:

Firm	EPS	Share Price	P/E ratio
A	$1.00	$18.00	18
B	0.60	13.20	22
C	10.00	140.00	14
D	2.20	57.20	26

Compute the value of a share of Claremont Company stock using the price-earnings multiples method.

Trailing P/E multiple valuation
Forward P/E multiple valuation